Yes. iPod touch works seamlessly with AirPods. It supports the simple one-tap setup, and it will also set up automatically if you are signed in to iCloud and set up on another supported device.
Yes. The same MFi-certified controllers that you can use with iPhone, iPad, or Apple TV also work with iPod touch. You can download hundreds of your favorite controller-supported games on the App Store.
1 Available space is less and varies due to many factors. A standard configuration uses approximately 10GB to 12GB of space (including iOS and preinstalled apps) depending on the model and settings. Preinstalled apps use about 4GB, and you can delete these apps and restore them.
* AirPods sold separately.