I own a 2nd Generation iPod Touch (Got it for free) and I was having some a problem where everything in the app store was "This app is incompatible with this ipod touch" so I thought I forgeted something up and I reset it.
I am not sure why you figured resetting it was the right thing to do.
The 2nd gen is an old iPod that I believe was made in 2008 or before. It is highly unlikely it would still support a modern operating system. This, combined with developers supporting newer devices and iOS versions means invariably after several years your iPod will be left behind.
I have a 3rd gen, its pretty much the last in the line to still be holding on. I'll be moving on now, I love that device and I'll still keep all my favorite apps on it.
It is unreasonable to expect a pocket computer to be current almost five years later. There is a reason you got it for free.
You must have other grievances about the brand.