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For the money it is IMHO too damn expensive for a closed device. Runs a phone OS, no multi-tasking, no way (with exception of purchasing through iTunes) installing other applications unless jailbroken. Chances are Apple will charge for firmware upgrades like the ipod touch to v2.0.
Overall a device that only lets me purchase content through iTunes, restricts what applications I can install, allow me to only surf the web without flash support....has no practical use for me.
Oh and personally for me, I don't like the touch screen. When I tested an iphone it felt to me like I was back in primary school finger painting with the way my finger was moving about the screen.
But Apple did do one thing right with the iPad....allow you to connect to 3g via bluetooth to your mobile.
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