Today at the International Mall in Tampa, Fl the iPod touch arrived as an in-store model. There was no account setup on it, but the iTunes Wi-Fi Music Store was fully working (minus downloading). The feel is SIGNIFICANTLY thinner then the iPhone, and it is wafer thin. It does feature the reflective mirror styled back ala the iPod Classic and new iPod nano, so it is smudgy and can get scratched easily. Also, the lock button is on the opposite side of the iPhone.
The Wi Fi music store DOES NOT allow you to search for music videos, podcasts, etc only music. There is no downloading of any podcasts via the built in Wi Fi, but I know Dave Winer would like this feature to be included in future software updates.
Other then that the Wi-Fi with Safari works just as well on the iPhone. The inclusion of an address book icon is a nice touch. If you aren’t really that thrilled with AT&T, I say DON’T get the iPhone, you will love the iPod touch. THIS IS THE BEST IPOD APPLE HAS EVER MADE.