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Just some numbers, based on my hardware:

Lion OS X install on disk: 7GB

iOS 5.0.1 install: 1.7GB

My MacBook's RAM: 8GB

iPod Touch: 512KB

MB's disk size: 100GB

iPod Touch: 8GB

So: Maybe they removed 80% of the API in general because the iPhone/iPod touch is only 10-20% of a normal computer? Something had to go.

jwz is complaining about OpenGL 1.3 support. It might be worth asking yourself what computers were like when OpenGL 1.3 was released (August 2001).

P.S. I'm guessing your iPod touch has 512MB of RAM, not 512KB.