I disagree with that idea...
What the hell do you mean it is a good device, but it is a bad phone?
If you are here to bash AT&T, then keep it to yourself. The coverage is fine for me in MD, but it may not be for some others.
iPhone 4 was a big step forward from iPhone 3GS. Don't expect too much from next iphone.
Again, if you want to bash iphone 4, then perhaps, you should change the title saying "iphone 4 is a great device, but it sucks as a phone."
No it's not...
It might do few things similar, but the hardwares are different.
1. Camera Quality. iPod touch camera sucks and it lacks flash.
2. Build quality. iPod touch build quality is no where near iphone 4.
3. Screen. They both have retina display, but iPod touch doesn't have IPS display.
4. GPS
5. More ram
6. No need to carry iPod touch and your phone. It's one device.