When Palm Treo's came out, they cost $499. Very limited appz and one had to buy third party appz to do diff things...plus Palm OS sucks big time...with their frequent hangups. So $500 for touchscreen phone, ipod, email & internet is awesome deal in my opinion. Once again the designers @ Apple show their superiority in design. Hands down no one can beat Apple in design & simplicity. Me getting one for sure through my friend who works @ Apple.