Aikijitsu wrote:Dot wrote:An iPod touch will be cheaper

Good idea. Besides, the life expectancy of an iPhone is about 5 minutes. I swear. I time I look at technology I see, "New iPhone! The best version yet!"
The iPod touch and iPhone have both been updated only once since their first release

Apple usually refreshes their devices annually, so it's to be expected, I think...
I'm very happy still with my first generation iPod Touch, and unless you seriously need the phone features, I would recommend an iPt over an iPhone any day. My one complaint is that I bought the 8gb version, and I outgrew that a long time ago...
All that being said, both the touch and the iPhone are due for updates pretty soon (June-ish), so I'd hold off if I were you.