I've got a 16Gb iPod Touch, and love it!! Especially now that it has the extra apps!
I'm not much of a mobile phone user, but after having the Touch, I wouldn't hesitate in getting the iPhone when it's released here. Going visiting? 3 taps, and you've just about got the directions in front of you (assuming your destination is in your contact list), you have to see it action to appreciate it.
Anyway, if you are considering an iPod... you can have my older 60Gb iPod Video for $275. Still works perfectly, but I got the Touch as a demo tool for the shop ;^) (That's what I'm telling the wife!)