I found this update quite interesting because I didn’t know about the mic on the 4th gen iPod Touch. Here’s what the app update says:
Touch 4 users: The Touch 4 mic is the tiny hole located next to your camera. Due to its location, the mic is not able to pick up your breath if you do not directly blow into it, it’s very different than recording your voice. So the app rotates to the most optimal playing position with correct fingerings so that you can have the best results when blowing into your mic.
I’d be interested to hear from anyone with a 4G Touch on what they think of the mic input on the device.