The thing is I can't get an iPhone no matter how much I want it because AT&T does not cover here, and even if it did, I refuse to sign a crappy 2 year contract (just f'ing ridiculous). So Apple needs to sell me on a new iPod, not a "oh, sorry to hear you can't get an iPhone here is what we threw together on a weekend for people like you iPod".
I want a full widescreen touch screen, with WiFi for Safari, Mail and iChat. Leaving the camera on would be nice but would not be a deal breaker. All for $399. As long as it is 16GB+ I don't really care.