Yes, they also specify the space like in HDDs so "16 GB" is 16,000,000,000 bytes which is actually about 15 GiB... so they must be using about 500 mb for the OS and default resources, not to mention file system formatting overhead. I also saw 14.5 gb usable space on a YouTube video review.
See "item 2" near the bottom of this page:
Apple - iPod touch - Technical Specifications
2. 1GB = 1 billion bytes; actual formatted capacity less.
I am also itching to get my hands on a Touch, should have it before the end of the month...