iPod Touch or iPhone? Yang mana satu?

Just doing a quick google search on this question shows that there are quite a number of people out there with this dilemma as well. A lot has been said about how these two products address different market segments and heck Mr Jobs even mentioned that the iPod touch is supposed to drive sales of the iPhone! Since this is my current dilemma, I thought I’d just jot down my thoughts and findings on this issue here. Then I will open a vote for you to tell me which one you prefer.

The Equipment

From Wikipedia:

iPhone 3GS – The iPhone is an Internet and multimedia enabled smartphone designed and marketed by Apple Inc. The iPhone functions as a camera phone (also including text messaging and visual voicemail), a portable media player (equivalent to a video iPod), and an Internet client (with email, web browsing, and Wi-Fi connectivity) — using the phone’s multi-touch screen to render a virtual keyboard in lieu of a physical keyboard. The iPhone 3GS was announced on June 8, 2009, and has improved performance, a camera with more megapixels and video capability, and voice control

iPod Touch – The iPod Touch (trademarked and marketed as iPod touch) is a portable media player, personal digital assistant, and Wi-Fi mobile platform designed and marketed by Apple Inc. It is currently in its third generation (3G), which is available with 32 or 64 GB of flash memory. The third generation includes faster hardware (the same microprocessors, graphics engine and RAM as the iPhone 3GS), voice control, light sensor, and bundled earphones with a remote and microphone.

So, based on the above info, I am led to believe that the iPhone is just an iPod Touch with a phone function. Is that true? Well, there seems to be some debate about this and gearheads will definitely disagree citing major differences in the processing power and the UI.

However, the bottom line here for me is, do these performance and UI differences and of course additional phone function justify the extra money spent on the iPhone? Lets take a look shall we?

Pricing

According to the Singapore Apple Store, the ipod Touch retails at
468 bucks for the midrange 32GB version. 

QQestore lists it at B$455.00.

There is no pricing for the iphone 3GS 32GB on Apple Singapore Site

QQ lists it at B$1,488.00. Thats a difference of over B$1,000.00!! Just for an additional phone function?? Hmmm… kinda hard to swallow leh.. what do u think?