The iPod Touch from the default installation is tied to the sample order (made by sample customer John Doe), and thus cannot be deleted until the order is deleted.
Therefore, in order to delete this product, you first need to delete this sample order.
To safely delete the default order (and thus be able to delete the iPod from your catalog), install the "PrestaShop cleaner" module (which is available in the default installation since v1.5.4), open its configuration screen and check the "Orders and customers" box before you click on the "Check & fix" button.
While deleting all this data takes only a handful of minutes, you might prefer to not have to do it at all. In this case, you can install your shop again and choose not to install the sample data during the installation process: simply relaunch the installer, and in the "Shop Configuration" screen, choose "No" for the "Install demo products" option. ONLY DO THIS IF YOU HAVEN'T CUSTOMIZED ANYTHING YET.
Note that you will also lose some useful content, such as the default contacts, administration profiles and CMS content, which you will have to recreate by yourself. In short: you'd be better off deleting the sample content by hand.