I'm sure that many ipod touch buyers love the iphone but just can't justify the cost. But with apple's price drop on the iphone you can get a refurbished 8gb iphone for $350 vs an 8gb ipod touch for $300. There have been reports of being able to activate an iphone on prepaid so you'd essentially be left with an ipod touch if you don't want a new phone plan. So for a small difference in price $50 gets you the possibility of having a phone along with your touch in the future if it does ever get unlocked. Wouldn't it be wiser to just get an iphone?