I'll admit I'm a bit annoyed.
In the US the iPhone 4 is $199/$299 on contract, so the iPod touch with all the new iPhone 4 features, minus the obvious calls and contract, is great.
In the UK, we pay £499 for the 16GB iPhone 4 to buy it outright, with iPod touch costing less than £200.
Basically, I have no contract, but I've essentially paid £300 to make phonecalls.
That's tough to swallow.
...and surf the web anywhere, a 5MP still camera (Touch is 1.3MP and even takes less than 1.3MP stills) plus a guaranteed 100% compatible iOS 5 upgrade