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No. You will only lose all the content on your iPod if you elect to restore your device to it's factory settings. Even then, iTunes will warn you that by doing so, you will be losing all of the current content on your iPod and completely wiping it. Updating or reinstalling iTunes won't affect your iPod, as long as you make sure not to accidently restore it (your iPod) to factory settings. Once the new version of iTunes is installed and you have connected your iPod to your computer using the USB device, your computer will pick it up and either automatically open iTunes, or ask you which program you want to use to run the device with. I always make sure I have iTunes open before I connect my iPod - that way, it automatically appears in iTunes once it has been recognized by my laptop.
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