Hi everyone, I am right now being faced by a mental problem. I've had my iPod touch for about two and half weeks now, and I love the little thing. But now, I'm getting some buyers remorse for the iPhone.

Can someone help me out here? Just the other day, my cell phone started ringing and I held my iPod to my ear.

Someone convince me that iPhone's are horrible and stick with the touch, or tell me the pros about the iPhone. Thanks in advance.
I was going to wait for the iPod touch to come out -- I figured it was going to happen -- but caved and bought an iPhone a few weeks before the touches were announced. Then about a week later we bought one of the last 4GBs for my wife. I'm glad I jumped the gun.
With the tight integration with iTunes, even though my music collection -- at least the subset of it I store on my Mac -- is about 19GB, not including photos and video, and I only have about 7.3 GB accessible for storage on the iPhone, it's just not a problem. I swap out what I want when I want. Right now I have about a 100 albums on my iPhone, with room for a couple of movies, or a movie and a couple TV shows -- that in addition to a couple hundred high-photos from iPhoto from my last 90 days album, then all my iCals and contact information, bookmarks, 50 e-mails sync'ed with my .mac account. 8GB with 7.3 user accessible is just not a problem. You buy new music, you listen the hell out of it for a couple weeks or months if it's great, then you buy some new stuff, then go back to specific old stuff for a couple weeks once a while. iTunes makes all the very easy to swap out.
The iPhone is my first flash-based iPod. Right now, to hold all the music I have in iTunes, I'd have to have a hard drive player, and although I've kept my video iPod as a spare, I'd never go back to hard drive for my main player. The battery life with flash is phenomenal in comparison. The max battery life is the max battery life, it's not the max battery life of a 32MB or smaller playlist -- the video iPod's cache size -- repeated until the battery dies, so long as you don't skip songs, call up different songs, etc.
Look at this way: before iPods and the like, say you had 1,500 CDs -- a huge collection -- and you had one of these giant portable carry cases and a top-quality portable CD player. Your battery life was worse, and how many discs did you carry around? 50? A hundred if you were really, really into carrying a lot of music -- and in a pack or bag, you'd only carry at the most probably 25 in a portable case.
As for AT&T, our family plan for 2 iPhones is only about $120 a month, total with taxes. We paid T-Mobile $100 a month -- contract rate but no longer on contract but we weren't planning on giving up our mobiles -- for more anytime minutes, but no data, no roll-over minutes and no in-network (that's any AT&T mobile number, not just ones ones your plan) free mobile-to-mobile calls anytime, day or night, 365 days years. It's a wash. Really the only time we actually came even slightly close to using our 2,000 minutes total between us was when my wife was in the hospital on the high-risk OB unit for a pre-term labor problem (everything came out fine). How often do things like that happen?
So, you have to decide about phone usage. And just make sure and check voice and EDGE coverage in your area first. From my experience, the AT&T reference map for good coverage doesn't cheat: if it reports good coverage for a given area, it is good coverage. We have fewer call quality and dropped call problems than with T-Mo and our EDGE download speed is 190kbps average.