I hv ipod 4th gen. It got evrything except telephony. Here my opinion to choose between iphone or ipod. Answer this question: what purpose u want the iDevice for? If u thinking about games, internet, organizer, music, then just get an ipod. But if u need a phone, buy iphone ONLY if it meet yr budget. Dun get burdened with expensive phone, coz cheaper phone still can do the same thing: call and sms.    furthermore, if evrything squeze into 1 device, the battery cant last to meet all yr need. If yr ipod died, it wont gv u much trouble. But if yr phone died while u r out, u lost 1 of yr basic needs in life.    in term of battery life, ipod is much batter. Last i charged my ipod was yesterday noon. Then i listen to music all long in the afternoon, then stop for a while before i start to play games at night for couple hours. Play games for a while again this morning, nvr turn off if not using, now the bat is still half full! it really impressed me.   

today ipod touch 4g is only 748, i bought my ipod touch 2g at 799 like 2 weeks before the 4g came out *sigh

I think he referred to Apple Red Friday Shopping Event 

Most of it ya...

i heard ipod can turn into iphone. true?

I would say bringing one extra phone won't give me any weight either.Grab a good phone + ipod touch would seems lot more cheaper than an iphone 4 let say.Scared of bringing one extra charger when u're travelling? T_T i have nothing to say since the charger is less then 500grams. It depends on oneself which one you would prefer the most. PS: Will you seems happier with a DSLR and a phone or a phone with cameras when you are taking photos :-) Just apply tat you will get what you want.