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iPhone as "full-time" iPod replacement?

Almost a total replacemnet, but I use my ipod nano for the gym. My ipod falls out of my pocket quite a bit and even though I have a case, I still would prefer not dropping it all the time. I put it in my pocket as I don't like the arm band as it is irritating (especially when I am doing arms, and it gets in the way if I am shadow boxing.)
 
I just use my iTouch now. I don't know if i would be happy if the app 'PocketTouch' wasn't released. That really means its better to use than iPods (unless you're against the size of the itouch!
 
Has totally replace 4 items that I used to carry. 30gig 5th Gen iPod; Sony Clie' PDA; Treo 650 and my Sony Cybershot.

If iPhone 2 comes with 32+gig; a 3 to mega pixel camera and one other hardware change then I will buy it. Along with App Store and Enterprise it will fully replace the above 110%
 
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