Is my Itouch done for good?

Keep it in rice for a couple more days, 2 days is too short, your iPod might be working right now but in a couple of days your iPod will probably shut down on you, so keep it in the rice for about 1 1/2 - 2 weeks, and your iPods sleep button should work again, it will get rid of any water marks left behind on your screen , and your iPod won't shut down on you in a couple hours. Make sure to turn it off!! Btw don't keep checking it everyday to see if it works, that will wear away any electrical components that got wet, after two weeks, PLUG IT IN as you power it on for the first time.