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I've had an iPhone 4 for a couple of years now, and think it's excellent, but I also have an Android tablet, and that's damned good, too. You say that you currently have an iPod Touch; one possible benefit of the iPhone is that, if you have any docking stations, speakers, etc, for your Touch, they'll also work with the iPhone.
The iPhone 5 is expected to be announced mid September; if you don't have a desperate need for a new phone right now it might be an idea to wait another few weeks and see what's announced then.
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