i had an itouch but it was before there was jailbreak software, i won it in some online contest and sold it for $200 but from what ive read when the touch is jailbroken its quite a bit more fun and having wifi and skype on it makes it a cheap alternative to a home phone.
I have a iTouch 1st gen and a 3G iphone. They're different things altogether. I do use the touch more at home with wifi. It's a slimmer unit, and more comfortable in the hand.
I do, however, love the iphone when I'm on the road. Especially when you're waiting for somebody or have some time to waste. Fire up Safari and off you go.
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