Why doesn’t the 4th gen ipod have the camera app anymore

I hopefully have a solution to this issue. I also had this problem, and I believe it's because you have insuffient disk space and iTunes being a large program requires so much disk space to be available in order to perform these tasks.

Therefore, iTunes will bring up the error after reaching 2/3 of the way and then the error appears: "iTunes could not restore the iPod/iphone 'NAME' because the backup could not be saved on the computer." The backup you did is there because you're obviously selecting it when "restoring from backup". So free up some disk space and redo the "restore from backup" and it should complete the process without any errors.

This could be a memory issue that the developer was forced to handle this way. All apps in iOS are subject to memory warnings at which point the app (developer) is to free up as much memory as it can by clearing out what the developer considered unnecessary information.

Another point of of possible quitting is if a phone call is being received. Apps only have a split second to save what is crucial before quitting to make room for the call. Again, the developer has to decide what is truly important and what isn't to save.

The save position may not sound like a lot, but mobile devices really don't give developers a lot of room to play with and media of any type is a resource hog.