IPod Touch Newbie: What is the purpose of the iTunes app on my iPod Touch?

What is the purpose of the iTunes app on my iPod Touch?
All it does is connect to the iTunes store if I'm near a WiFi connection. It appears to be useful only for impulse purchasing of media. So why is it not named "iTunes Store"? It appears to have no other function.
Also, to listen to my iTunes music on iPod Touch I have to click on the Music button...not the iTunes app. What logic is that?
Also, iTunes has synced a movie for me, but I have no clue how to view it on the iPod Touch. It doesn't appear in iTunes on the iPod Touch, and there is no "Movie" button anywhere. What am I missing? I can't find it anywhere.

For purchasing music, downloading podcasts,etc.
http://manuals.info.apple.com/enUS/iPod_touch_3.1_UserGuide.pdf

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