I currently use both an iphone and the NIT i like the screen size of the tablet, but the UI, speed, and stability of the iphone. I consider the touch and iphone to be a competitor under what the OP has stated, but each have their pros and cons that are up to the end user to choose what to spend their money on. With the growing list of applications created by the ever expanding jailbreak community, almost all software shortcomings of the iphone / itouch are disappearing. The added fact that my jailbroken iphone is faster and more stable than my officially sterile NIT is a bonus in apple's favor