iPod Touch: Sexiness Personified In An Object

So eh, I'm positive this has already inundated the internets with alarming speed, but a new iPod was announced today by god, urr Steve Jobs. The iPod Touch. I'll list a few of Jobs' talking points before I get to my point:
• Available this month, $299 and $399 respectively
• Offered in 8GB and 16GB models
• 22 hours of Audio Playback, 5 hours of Video Playback
• Standard iPod connector
• Safari, YouTube, Google & Yahoo Searches all available on the iPod Touch
• Antenna on back for WiFi Connectivity
• iTunes available over WiFi on the iPod Touch
On to my query. Why would I want to buy an iPhone now with all the firepower this thing has? I don't even like talking to people on the phone. Why would I spend $699 and sign my life over to AT&T for 2 Years when I could just buy one of these for $299? It's a strange business move by Apple, but I'm not going to discredit the glory of this device.
If I can manage to mop up the puddle of drool on my desk, I might try to muster the gumption to justify this future expense to my wife.





What say you?!