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Answer to: Why am I only able to hear when my speaker is onIt is either one of two parts which has gone, normal due to water damage. The first part is speaker it's self is dead or faulty. The second part is the cable which the speaker sits on, Light Proximity Sensor Front Camera MIC Flex Cable for iPhone 5.
Answer to: Wet iPod touch screen and touch not respondingI have had this issue before, you have either not left it long enough or the screen back light is broken. Was the iPod in a case when it was dropped? as this might have helped stop water getting it to the internal parts via the headphone jack and the charge point.