iPod Touch update checker is still saying 1.1.4 most of the time with occasional bursts of 2.0 and then silence.
Apple released the 2.0 update on the same day they started selling the new iPhones. This overloaded the servers to the point where new phones could not be activated and the older ones could not be updated, in fact many folks found themselves with bricked phones according to news stories. The iPod touch update is just a "minor casualty" of this.
Ole