One of my friends has an 8GB iPod Touch, and it's pretty amazing. We were watching random youtube videos in the woods while they were getting blazed. It takes a few minutes to get accustomed as to how it works, but I'm pretty sure it's the next gizmo I'm going to buy.
Also, to repeat the already known fact, it does not have phone capabilities. Internet/phone are not the same thing. In essence, fuck the fuck off Wallow! GTFO!
Thanatos, you will be very satisfied with your buy. You have porn/music on the go, what more do you need?