This should be interesting. As an iPhone owner, I can think of no reason to get an iPod touch. I can see a good reason to get an iPod classic or iPod nano (high capacity or small size) but even the 16 GB iPod touch doesn't make much sense to me, because it's just not that big of a capacity jump, especially at the same price (now) as an iPhone. That's not to say that it's better to get an iPhone than an iPod touch if you don't already have either, as there are obviously people who don't want to deal with the service contract (and associated problems like switching carriers, not being in the U.S., etc).