ITunes-- iPod Classic, iPod Touch, iPhone 4 - What to do, what to do....

Question

Like everyone else, I've been eagerly anticipating the arrival of the iPhone 4. Unlike everyone else, I was disappointed in the release, but only in one respect - I thought for SURE that Apple would be releasing a 64GB model. No go, what a letdown!
So here is my dilemma...I currently have no iPhone. I have a 64GB iPod Touch 3G that is loaded with some 6000 songs, videos, applications, notes, etc. I actually purchased a 32GB model first, got the error about not enough room, returned it, got the 64GB model. iTunes tells me that I am currently using 49.41GB, of which 27.54GB is music, 16.62 is video, and the rest is incidental. That's a problem.
I also have an 80GB iPod Classic, which I sync to the same iTunes library. And I have another computer, currently without iTunes.
You can probably see where I'm going with this...I firmly believe in carrying around every piece of music that you've ever owned, because you never know Either I have to change my thinking, or employ one of several possible ideas that have been thrown out there for me:
1.) Install iTunes on computer #2, load up all music, sync it to the iPod Classic. Whittle down the current iTunes Library on computer #1 to something less than 32GB, and the iPhone becomes a "greatest hits" music library for me. Probably the easiest road with some obvious disadvantages.
2.) Back up my entire MP3 library onto external disk, and let iTunes convert those MP3 files over to some lower quality AAC files. I would probably still have to whittle down the library substantially to get below that 32GB threshold.
3.) Figure out some way of getting one iTunes library to sync differently with two different devices, I don't think it's possible. But I do know that there's some way that iTunes realizes that you don't have enough room and will sync to some sort of "iPod Playlist" if available.
4.) Pray that Apple comes to its senses and releases a 64GB model before I jump on the bandwagon.
Anyone have any other ideas?

Answer 1

With your iPod connected, click on your iPod on the left pane under "Devices." Look at the Summary tab, and you will see the option "Convert higher bit rate songs to 128 kbps AAC." Next time you sync, it will place 128 versions onto your iPod/iPhone.
Be aware that the first time you use this option, syncing will be extraordinarily slow, since it must do an on-the-fly conversion of each song. In my case, the first sync took 9 hours. On later syncs, it will be quicker, since it does not have to re-convert the ones that are already on the device.