Now I have 2 kids with iPods and I'm thinking how nice it would be for them (agh me) that as I'm driving down the road they could through a wifi connection to the droid still have access to online content.
Wifi tether will not work with most portable devices like iPods because it uses an adhoc connection instead of becoming a hotspot. Many (most) portable devices that aren't laptops don't support this type of connection.
My understanding is that there are technical reasons why the phone cannot tether as a hotspot.... and while it may be possible in the future, you shouldn't be counting on it.