For base cell phone usage that is simply an outrageous amount to be paying. I spend $15 a month for my cell phone and am seriously thinking about dropping my land line. That amounts to $540 bucks more a year than I now spend on a cell phone. Granted you get a data plan but that should not be more than $15 itself.
Basically the plan is about double what it should be, even more frustrating is that Apple is getting a cut of that plan. It is sort of like buying a house with cash and them being forced to pay the builder an additional fee to live there.
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Now to the original poster; I can't tell you what to do but I will state that you give up a lot of functionality when going to the iPod Touch. Mostly in the sense of the hardware available to you. I'm currently in the same position you are with respect to choosing between the two. Frankly I won't make a decision until I can see just what the SDK offers up tomorrow.
Funny thing is I'm with Verizon too. The switch doesn't really bother me at all. It is purely an issue of cost with respect to the contract. As others have noted it adds up quick, over 2 years it is 1080 more bucks than I would have spent purely on cell phone bills.
I do have an option which would be dropping my land line and go 100% cell based. This however means no dial up. Service wise though I can make an argument that you would actually be getting a better deal going this route. AT&T and Apple offer up a lot of features in the connection that most land lines never thought about having.
What it comes down to is that there is no clear and easy answer to your question. Mainly because it is all about you, your needs and expectations. I'm still trying to figure my expectations out. The biggest problem is that I have cases where I can't get WiFi or where I can't get a cell connection. That would make the iPhone more versatile, but still it is hard to judge against the excessive price.
Dave
