The photo quality from the iPod is dramatically worse than the iPhone. The iPod Touch isn't just an iPhone minus cellular.
It's an improvement to the camera that was in the iPhone 4 though with the same megapixel count. I've taken photos with my iPad mini in a pinch and they still look good.
The iPod Touch camera is an okay camera, but it has significantly more noise, less color accuracy, is much worse in low-light situations. If you are taking pictures in great light, it's fine, but it is like smartphone cameras from several generations ago.