Uhh no, all devices aren't actually 8GB or whatever they say. My iPod touch is 7.1, and my iPhone is about the same too. You can talk bad about it all you want, you will want one in the future. My old phone died, and I wanted an iPhone but I got the G1 instead, I still couldn't appease myself, and got an iPhone through a special Best Buy promotion, and gave the G1 to my mom.
Read my post above: Just cancel your AT&T contract pay the ETF, and unlock the phone and use it on Tmobile. Thats what I've done, and my iPhone is working perfectly, and I'm paying only $5.99 for unlimited data. I don't know of what problems you are talking about with unlocking, but your best bet is to unlock it for Tmobile.
I like the iPhone. I've used an iPod Touch and they're both basically the same except the Touch doesnt have the general phone capabilities. New iPhones will come out every year and the $80-$100 is a rip off. My friends have all sold their iPhones and I never wanted listened to them, until now. In the future, you'll realize how much money has been spent on the phone. You're not paying $200 for an 8GB iPhone 3G, you're actually paying $1200 a year for it. Think about it. I can get a Curve 8900 and a Touch for a little over $400 and not have to pay anywhere near as much as that. Also, if I go to T-mobile I don't have to pay my own phone bill because of family plans which saves me a LOT of money.
Sorry if it seems I'm bashing the iPhone but I'm not. It truly, IMO, is the BEST phone out on the market right now. I just can't afford to spend so much money every month on it.
Idk what to get first, the Curve or the iPod Touch. I'll have to see what i can do.