Guidance: Old, but still works, but expensive for what it is now.
This one is tricky. The hardware of the iPod touch was last updated back in July 2015, which means that by modern standards it’s getting quite long in the tooth. However, the July 2017 price cut means that it’s a better deal than it was a few weeks ago.
Personally, I’d see what happens at the next iPhone launch. It’s quite possible that the price cut was a way for Apple to clear stock of the 6th-generation models before making an update. Or it may be a way to clear stock before killing it off altogether.
Either way, I’d wait and see what happens this month.