A few questions:
Is it possible to buy an iPhone without signing up for phone service?
Can you use iPhone's bluetooth to connect a keyboard?
Can you sync the email, address book, and calendar with Outlook?
If the answer to these questions are all 'yes', then maybe $399 is worth it for a really good PDA with built-in MP3 player.
To compare, the Palm TX is $299 but only has 100MB of memory built-in. You would need to spend about $150 for an 8GB memory card to make them comparable, making the iPhone seem to be a better buy, except that there's way more software available for the Palm (much of it Freeware) and you have the option of using a stylus, which is critical IMHO for a good PDA.
Me, I'll stick with my Nano and my Blackberry, even though I really miss the stylus and all the software I had on my old Palm IIIe.
The iPod Touch sounds like it's less functional than a Palm IIIe with a Nano velcroed to the back of it. Forget it. I'll stick with my Nano and my Blackberry, and I only have the Nano because it was a gift. I still don't see the extra value of an iPod compared to the many cheaper MP3 players.
Why No Fries with the iPod touch?
Why No Fries with the iPod touch?