I've passed up the iPhone a few times now, and it was always a tough choice but for my own reasons I decided that I needed a phone with Windows Mobile. I love my iPod Touch though. I listen to podcasts on it all day at work and when I'm in the car by myself. I keep music on it to listen to in the car when my family is with me. I record TV and convert it to watch on my Touch. And of course, as the article says, it makes a great internet tablet for casual surfing. I often use it at home to go through my Google Reader feeds or to read email.
Probably one of the best things is that it keeps my kids busy. My 4 year old love to play iBowl on it.
Current devices: iPhone 3G. Previous devices: Samsung Epix and 1st gen 32GB iPod Touch BlackJack II, iPaq 6945, iPaq hx4705, Dell Axim x30 high, iPaq 3765.