Format iPod Touch 1G as an expensive Fat32 Flash Drive?

I hope I don't get haters for this (I probably will), but my 32GB iPod touch 1st Gen has become a brick to me. I use the total space of 32GB on my Android phone (dual core) for music now, as it has a 10-band equalizer on the PowerAMP Player on the market, which WAY surpasses the quality of music on the iPod, at least 2 years ago (haven't used the iPod since then), especially when using lossless FLAC files. (I know iTunes has Apple Lossless codec support)

I never use the thing anymore. Cydia crashes or just takes 5 minutes to load the deb package list every time I open it (even after a full restore/fresh jailbreak). The old device is way too slow to run most of the awesome stuff available on the appstore these days, and frankly, the scene's awesome developments had died by the time I was done with the iPod 2 years ago.

I am in need of a 16GB+ flash drive. Period. (Backtrack 5 Linux Persistent bootable device needed) Is there a way for me to format my iPod Touch as FAT32? (Yes, I mean format, not disk mode via iTunes)

Here come the laughs, but I'm serious. I will probably never use this device again. (Did I mention it has a gaping pressure spot/pixel leak on the screen? Happened randomly. I left it on my desk. The next morning, the spot was there, and the device hadn't moved. Go figure, with my luck. lol.

Anyways, I'd appreciate any help. And if I can still do a restore from iTunes in some way, extra points and cookies. (Thankfully I have a MacBook Pro available, that I can use to do any of this, so that is an option)

Thanks in advance.
-Troop116rules