I find using my iPhone kinda a letdown now. It seems so small. It's a big iPod touch, but some of the apps are really nice looking. Like the Ebay app, it's better than the website. They did a sweet job on it. As for the laptop comments, it's really just a device to communicate and surf the web, watch some video, ect. Being 3 times the size of an iPod touch is really nice. Worth the extra money if you don't have an iPod Touch. Battery lasts forever, really haven't put it down since 11 am and it's at 48%. My daughter watched the new chipmunk movie on it in that time. Battery will do easy 10 hrs of video. I was right about my daughter, she picked it right up and had no issue using it. I'm keeping it, if you don't already own an iPhone the 3G one coming soon should be pretty cool. I don't need to pay AT$T < anymore money.
In the end it's a "Flashier" iPod Touch the apps look better because it's a big screen. As much as I want to argue with Joe I can't, but I already see I will use this a lot around the house. Half the weight of my Air and almost as big a screen. More apps will come out and it will get even more use.
Go play with one decide for yourself.