The touch is and always will be a gimped iPhone no matter what anyone says. I did the same thing and ended up liking is so much I said what the heck and just transferred to ATT. I pay my cell phone bill every month anyway why not at least enjoy my phone. EDGE here is a little faster than dial up but OK for basic surfing when I'm rarely away from the comp.
Yeah dude, good luck with the upgrade. iPhone over iPod touch is a no brainer, even if you dont sign up with AT&T and just use it as a nice ipod. It still has better features and i like the look of it better. Its just not as thin...