OK you're right about the costs of the prepaid iPhone vs the iPod Touch, so I believe you are correct, but what do you mean "the iPhone produces more profit than the iPod touch, if only because of the phone companies price gouging." You mean more profit for everyone involved or just for Apple, I don't see how the phone companies price gouging makes more profit for Apple since they aren't getting a percent of the monthly fees anymore with the 3G.
Oh, sorry. Didn't mean that as it sounded. I meant to include that also as further evidence. I should have phrased it more like this:
'I think the iPhone produces more profit than the iPod touch, if only because of the phone companies price gouging. '
I meant the high initial price of an off-contract iPhone as a reason adding to my thinking that Apple is getting more profits from the iPhone than iPod touch. Sorry for that, I can see how that could have easily been misinterpreted.
BTW- 3.0 has streetview in the maps app for iPod Touch (FINALLY!):