Just bought my 16GB yesterday! To answer your question -- Marketing Distinctions. The iPhone is the "communicator"; the iPod touch is an iPod with bonus websurfing, which itself is probably just an artefact of the online iTunes Music Store access. However you can easily use your iPod touch to access the online webmail functions of your ISP, or Gmail, or the like. But I bet within a couple of week there will be a port of Mail hacked for your touch.