Here's a comparison for you:
iPhone:
- I already have a cell phone that was very cheap to buy and it's a 'pay as you go' phone because I'm not a heavy talker on the phone.
- The iPhone is only 8GB and I'm guessing that Mail and stuff take up some of that space so what you really have is even less space for iPod music.
- With the iPhone, you have to have a service contract with at&t and pay even more money to use it besides how much it costs (which it costs as much as a 16GB iPod Touch). After you choose a plan, then you're paying even more for it and EVERY MONTH.
- Of course with the iPhone, you're connected ANYWHERE.
- iPhone has a camera (Yes, who cares about camera phones... I don't)
- iPhone has a speaker (Whooop dee dooo)... the iPod is not a boom box.
iPod Touch:
- iPod!
- It's got Safari just like the iPhone as long as you're near wifi.
- 16GB is better than 8GB (is it not?)
- Thinner and shinier!
- Wifi is faster than the iPhone's satellite crap
- With less Apps on the iPod, there's more space available to do what it's ACTUALLY MADE TO DO, which is play music and movies/shows.
- You don't have to keep paying each month to own an iPod Touch... you pay once and it's yours (unless you took out a loan to get it)
- No contract! Nobody can tell you when you can stop using it.
- No ringtone headaches (if you don't know what I mean, check out some of the iTunes discussions and iPhone custom ringtones)
- The luscious interface is what I've been drooling over about the iPhone ever since it came out and the multi-touch is amazingly easy to use. I've been waiting a long time for an iPhone without the phone portion (as I said before, not a big fan of cell phones).
- The iPod touch is not a PDA... it's still a music player... only this time, it has some pretty bonus features.
- Flash based... not hard drive based. Both devices have this but, I'm especially excited about this because I hated giving up my Nano because it was rock solid but, I needed more storage and I also wanted video. I LOVED my old 4GB Nano and it was almost perfect except 4GB was a LITTLE too small for my wide variety of musical tastes and it couldn't play video. I think the iPod Touch is a happy medium for me.... Flash based, bigger screen, can play videos.
- Speaking of videos... it's gonna be awesome watching them on the bigger screen but, I also like watching the videos by plugging the iPod into my TV. I'll record a TV show with my EyeTV Hybrid and then use VisualHub to quickly convert it to a high quality iPod video and then sync it to my iPod and it's ready in minutes.
I think that's all I had to say. So when you're deciding on what to buy... you gotta weigh out what is more important to you... an iPod or a Phone. The iPhone can't do very much iPodding and the iPod can't do any phoning.