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The reason consider iPod touch instead of iPhone are simple:

1) 3 years contract and $70 monthly payment is not worthy for non business man

2) it’s easy to turn iPod touch to phone at free or very low cost

Here are simple steps:

1) call out to normal phone via voip

skype is number one choice, 5 hours – 300 min at CAD$0.027 rate will cost CAD$8 , not matter local or long distance call.

google voice is also free to call normal phone in US and Canada  through whole 2011.

2) call in from normal phone

need a local phone number and forward to skype id, buy a virtual number from Virtufon http://www.virtufon.com at CAD$6 per month without talk limit

3) voicemail

buy from skype,  it’s CAD$6 for 3 months or CAD$20 for a full year

4) SMS

one option is from skype at CAD$0.12 per message

also there are many free web-based SMS tool, this is simple and easy one:

http://sms.dynadel.com

Let’s see how much cost for 300 mins local/long distance call + voicemail + SMS in Canada:

CAD $16

You will save at least CAD $40 every month then.

The only problem is this phone is not available all the time due to based on wi-fi not 3G.