iPhone – phone = iPod Touch

The Touch includes Wi-Fi just like the iPhone, letting you browse the Web and get info on stuff like stocks and weather, not to mention watch YouTube videos — all stuff you've never been able to do on an iPod before.

Another new trick is wireless downloading. The Touch will have a button for the iTunes Music Store, letting you sign on and buy songs from any Wi-Fi hotspot. The next time you sync with your computer, the Touch will copy it over to your iTunes library. It's about time this feature was added, though it gives you another thing to worry about if your iPod is stolen (assuming payment is automatic).

You'll be able to choose between a 8-GB model ($300) and an 16-gig ($400). Should be available in a week or two.