onestly...I got the iPod Touch (just like the iPhone, but with no phone feature). It serves my purpose. I didn't need a cell phone, just wanted the iPod and extra features. I get WiFi Internet (basically all internet sites are accessible in some form), it plays music, videos,
podcasts, you can download anything from iTunes directly to the iPod (without having to use a computer)...it's really nice.
I would figure the iPhone would be just like the iPod Touch, except with a phone. I've seen the iPhone and it looks to me like the ear piece is kinda small...could make for bad sound. If you are a texter...you may not like it. The keyboard is quite small...though, I don't mind it...I use Facebook.com on my iPod all the time. I'm 100% sure the iPhone doesn't come as pay as you go...it's a contract phone. Sorry.