ipod touch vs iphone
as stated earlier, the iphone will not work unless you begin a 2 yr contract from scratch (whether you are currently with AT&T or not). Also, if you are the type of person who sometimes feels buyer's remorse, my theory is that the pain you feel will eventually go away if you buy an ipod touch. if you buy an iphone, you will have a constant reminder of the debt you took on every month when you are billed. if you don't have a "smart phone" already, then that $30 extra you will be forced to spend every month over the course of two years for your iphone contract will equal about $720 (plus tax!) on top of your current plan. if you add that to the $200 for the phone, that is a lot of green and a lot of potential remorse!
AT&T has no problem giving you $200 now since you are contracted and liable for at least the $720 within 2 years. plus, why spend all that money with no mms, video recorder, etc.