Sqorgar said:The Touch lacks a few major features - the biggest one being no speakers. You have to use headphones. There's no camera or bluetooth either. Also, software updates cost extra while on the iPhone they are included in the subscription. On the bright side, the Touch is much slimmer than the iPhone, has a better battery life, has more space available, and you get more space for the money (an iPhone and Touch the same price, the Touch has twice the space).
Personally, I have an innate uncomfortableness with phones so I got a Touch and I think it's amazing.
Just remember: Touch = NO speakers. Could be a deal breaker.
The touch must have some small speaker functionality, because it makes small noises when you do certain UI actions, and there are small alarm noises you can have it make. It's nothing comparable to the DS or PSP though.