You can't do much work on an ipod touch either...

This being said, I use the Nokias for:
-general web browsing
-checking e-mail when travelling
-videophone (I sent a second one to my mother just for that)
-general telephone (skype) when travelling
-put some pictures on a blog for my extended family when travelling
-general entertainment, like watching movies, listening to music and reading books when travelling
-listening to French radios (both on travel and at home)
-checking on the weather and the news
-having saved maps of the city I travel to (maemo mapper)

less often:
-keeping accounts on a spreadsheet
-editing text

None of which counts as "work", but it is still quite useful. For example, the internet radio function alone is worth the (latest) price of the N800 for me, because there is no cheaper portable device that will do that (and not be linked to a windows PC or limited to what the manufacturer's web site allows you to listen).

The ipod touch can only do a fraction of that. The iPhone can do more of it, but using it abroad (outside of my home network) is prohibitely expensive in network charges (what most US residents don't realise). I mean 100€ per travel or more...

This being said, the ipod touch and iphone are very nice devices, no criticism on my part.