Couple things:
Remember that the Bad Elf GPS won't work with the newest iPod touch, it only works with the Touches (and iPhones) with a 30-pin dock connector.
It's powered by your device, so it adds to the battery drain of your device
I tried it with an adapter on a new iPod Touch and couldn't get it to work reliably, so I'd recommend sticking with the 4th gen or earlier iPod Touches
I used it on a 4th gen iPod Touch and it worked great. Used it on my bike during a 35-mile ride and was very impressed with the results, so I think it's a great piece of kit. Never used it backpacking though.
Bad Elf now has a GPS Pro that looks pretty cool. It connects to your device via Bluetooth instead of through the dock connector port, so it will work with the newest, as well as older, Touches and iPhones. It also has a data logging feature so you can have it gather data without being connected to your phone/Touch (which can be off) and then transfer the data to your device when you turn it on. Haven't used one but it sure looks cool. Costs $180 though.
If you have an older iPod Touch and really want to use the dock-connector version, I'll sell you mine since I no longer have an older Apple device to use it on. I've only got the dongle (don't really remember what else might have come with the package, but nothing that's necessary for its use). Say $60?