I'm totally confused. Doesn't this mean that Gmail only works when you're online? Which means... higher battery usage than a native email client, higher bandwidth usage, slower response time, doesn't work in airplanes, etc.?
With the requisite warnings about "no connection present" duly dismissed (this is an iPod Touch 2.0, so no AT&T network backstopping it either), I can browse my GMail inbox, read messages, make changes, and perform seemingly any "normal" mail function all without a connection. Obviously will have to connect at some point for it to be useful, but can do everything but send/receive new messages while away from a network connection.