It's not what it actually costs, that's what I mean. You're paying more than it's worth.
And the iPod touch is basically an iPhone without a camera, light, vibration, or cellular capabilities. Why would having those things cost an extra $400? (or was it an extra $500?)
iPod touch 32gb (no 16 gb) = $299
iPhone 4S 32gb full price = $749
So $450 extra. Hmmmm. Never realized the difference was that much!