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Your options really don't make any sense; they're so different (one's a phone, one isn't!) that whatever you get won't fit your needs very well.

[...]

Keep your first gen iTouch, you'll have a phone with a great camera, sorted?

That isn't really an option anymore.

This is kind of a big thing. I sold my 1st gen. iPod Touch for money towards an LG Dare or new iPod Touch, but I think I'm gonna go with the phone. I'll just ask for a new iPod Touch for Christmas.

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I have had a dare since July and love it... no issues whatsoever. Plus the camera with flash takes awesome pics.
 
What's the point of having a touch screen on the Blackberry Storm if when you touch it, it feels like you are pressing a hard button? I don't understand and I'm going with the Dare, cause the blackberry has stuff on it that i don't need. Also I'm not gonna wait for the Blackberry to come out just so I can compare them, and I know that the dare will be awesome! And I don't know anything about the Storm, except for possible stuff. Thanks for everyone's help!
 
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