I bought a 16GB iPod Touch at launch, making the decision not to wait for the iPhone. They're the same price, so you could argue that the iPhone is good value, although it has less memory. More interesting than which, or whether, to buy is the big question - is Apple really committed to breaking into the phone market? Conspiracy theorists say not, that the iPhone is there to please shareholders and keep competitors like Sony Ericsson from making much inroads into Apples dominance in mobile music. A defensive launch, then.
Over time the iPod Touch could be the more interesting device - already WiFi enabled, it is a platform open to third party developers, whereas the iPhone is constrained by the wishes of the network operator. Could the iPod Touch be adapted to make VOIP calls with a Bluetooth headset? Possibly not yet, but 2nd or 3rd generation? That would truly disrupt the mobile operators' market and would make Apple even more legendary among consumers than it is now.