Andrew bought me an iPhone for my birthday a couple weeks ago. Honestly, if I hadn't
needed a new phone (mine finally died after a long and painful water damage death while we were in SC), I'd have been more than happy to get an iTouch. It was on my list for possible Christmas gifts. It really does do everything the phone does without the extra monthly fee.
I ♥ my iPhone. Andrew's jealous of it, so he's plotting a way to get an iTouch since he doesn't need a phone. IMO, totally worth the expense! I'm thinking of surprising him with one from Costco soon.