Point?
I said it was virtually the same. I don't see how "better ____" makes a difference. Still the same features besides flash and GPS.
Fact is, they made it to identical. I wouldn't trade my iPhone 4 for a iPod Touch but I can't help but feel slightly cheated.
I don't see why you feel cheated. If you want to carry a phone and an iPod Touch around at the same time then go ahead. I did that with my Nexus One and it got on my nerves. Most people want one device that does it all. The iPhone does that and most people pay a subsidised price for the iPhone so it makes this irrelevant.
Paying for a phone unlocked and unsubsidised blows the price out of proportion and this isn't just recently. It's always been like this way before the iPhone.
Apple was always going to make the iPod Touch similar to the iPhone to rake in young customers and people who just don't want a monthly contract. The price is lower because the quality of the product is slightly lower compared to the iPhone.