"On the day I give up on my iPhone and trade it in for the iPod Touch, AdMob, a mobile advertising startup released its report that shows a big uptick in the mobile Internet usage via WiFi in the month of January 2009. According to AdMob, Apple devices generated 28% more requests (1.2 billion) in January versus December 2008. The iPod touch growth outpaced iPhone growth and now represents 40% of Apple requests, up from 20% in September 2008."

Wow. Nice numbers for a media player!
I imagine a lot of people take the Ryan Block route and keep an iPod Touch on the coffee table as a web tablet. It's one heck of a device and an excellent compromise for those not wanting to commit to an iPhone or AT&T.