I would buy this item immediately only if the Wi-Fi functionality isn't hamstrung, meaning I can't surf the web from the iPodtouch device. To come up with some sort of technology that allows users to "share songs" or "listen to Internet Radio streams" is at best mediocre. The touch functionality is fine, but for what it's worth, if the Wi-Fi doesn't allow you surf the Internet, well the Apple-AT&T deal is sweet for both corporations, not the consumer.
I'll wait for 3G iPhone to hit or when Research In Motion releases the first 3G BlackBerry available on AT&T. I currently have the 8700c and it does just about anything I need it for albeit on a slow EDGE network. I paid $250 for it and simply couldn't justify spending 600 big ones on the iPhone. I have a 4th Gen iPod Photo that has been put through hell but is still thankfully ticking with no signs of a weakening battery. But diatribes aside, iPodtouch + Wi-Fi gateway to Internet = EXTREMELY GOOD NEWS!