And you're not paying AT&T a minimum of $70/month (plus taxes) for two years. That's the lowest calling plan PLUS the $30/month data plan that you're required to have and does not include text messaging. Pricing without a contract is $599 for 16GB and $699 for 32GB.
However, you will probably see lower pricing with the next iPod Touch update. If the past is any indication, this will be announced in early September, shortly after Labor Day.
Since the release of the iPhone 3Gs the price of all the previous iPhones has dropped, so why hasn't the price of the iTouch changed?

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