Should I upgrade to the new iPod Touch?

Nope.
Mainly because it’s not worth it, you have the core functionality, and it’s not faster hardware.
The speakers are just annoying, so unless you do a lot of gaming and want to hear it without headphones, all you’re getting are volume buttons on the side, and a convex back – which I think is a downside.

Nahh. I have a first gen, the boyfriend has the second gen. When we got them both, which was around the same time, I got to pick what I wanted, I picked the first gen. Honestly. I don’t think the second gen is all that much better, really not something to brag about. Plus your 1st gen is only 6 months old. The only reason I would say to get a new one, is if you need more space. If you don’t, stick with the cute-wornout-engraved-8gig-first gen :]

nah. just spend the 10 to upgrade the software. in all honesty, i don’t use the speaker very much anyways…

No.