I've used my iPod Touch 5G before and it's fine. I currently have an iPhone 6+ and I love the screen size. You will appreciate the new specs for the iPhone Touch 6G, and I definitely recommend getting it if you don't plan on getting an iPhone with a bigger screen.
If you are looking for more screen space but still don't want an iPhone for whatever reason, look into getting an iPad Mini.
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As of right now I use an iPad Mini 1GEN. and occasionally my iPhone 5S. I'm not sure if my iPad is special in any sort of way but it seems to perform better on Graal than a lot of other players. I don't want an iPhone 6 either, the cost is too much, but I would like to attempt it at some point.
I am pretty much sold on the iPod Touch 6G right now. I just need to debate with myself economically before rushing to buy it.