Apple just discontinued MacBooks and took out optical drive from mac minis and macbook pros are next, therefore they are almost killing physical media. iPads will replace laptops, Steve Jobs himself said PCs will be like trucks and tablets will be like cars. And after just one year, iPad is already outselling all macs combined. And hey, if they can sell an iPhone off contract for nearly as much as an iPod touch, why wouldn't you get the iPhone, just don't use it as a phone if you absolutely don't want to. Plus, people who buy iPod Touch, don't tend to buy iPhones, and that is not a good thing for Apple, because that means you are probably buying another cheap phone, which more than likely is an Android.