I'm not a fan of protective jackets. Never had one on any of my mobile phones, iPods, or laptops. I do have protective pouches or bags, but I take my device out when I use it. So far, the only 2 protective jackets I own are the original Apple iPad case (but I only use it when I'm out... my iPad is out of the case when I use it at home) and my recent purchase of the Capdase jacket for my iPod Touch.
The only reason I've been looking for a case for my iPod Touch is for video viewing and FaceTime. I needed something that could serve as a stand in both portrait and landscape orientations. I found the perfect solution in the Capdase Soft Jacket 2.
Although I'm still not fond of having a protective jacket on my iPod, I like the fact that it's not bulky. It's quite simple in design and the integrated kick stand works well and folds flat when not in use. My only complaint is that the stand is a bit offset (dunno why) so it's slightly off balance when in portrait mode. Not a big deal as long as the surface you're resting it on is sturdy. It also comes with a screen protector (which I didn't bother installing either) and a soft neoprene pouch. If you're looking for a simple stand solution for your iPod Touch 4, this is one of the sleeker solutions I've found.