The Apple iPod touch looks like a brilliant piece of technology. It's an iPod, it can surf the web with WiFi, you can view YouTube videos and buy iTunes songs. I want one. It'll be my next iPod.

But in one move, Apple has cut the legs out from under a few rabid iPhone fans.

From some reports, apparently the iPhone isn't a great phone. What about all those people who gave up phones they were really attached to, locked themselves into a 2 year contract with AT&T, in some cases giving up cheaper monthly plans with AT&T to pay more with the same provider? Some bloggers estimate the total 2-year cost of the iPhone at $1,900. The iPod touch is $399 with no monthly fees. Those early iPhone adopters - just got screwed.

What about people who flew to the United States from England, or drove down from Canada, purchased iPhones (again with 2 year agreements) willing to pay hefty roaming fees? Screwed.

What about those people who spent all summer trying to hack the iPhone, to allow people in other countries to own and use such a cool device? Well, their business model just went up in smoke.

In some ways, the iPod touch seems like a better device than the iPhone, since it has no monthly charge associated with it. (Most people with iPhones seem to think that AT&T is overcharging for the monthly plans.) I can keep my phone AND own an iPhone. Cool!