My husband purchased my iPod Touch for me as a Christmas present. I have used it EVERY DAY since receiving it! At first, I was a bit skeptical. I own an iPod Nano and that was all I wanted for a music player. My mom purchased an iPhone and I fell in love with it but it is completely impractical for us to switch cellular carriers to AT&T right now for a number of reasons so I really thought I was out of luck.
Then, the iPod Touch was released which was reported to be "everything except the phone" only it wasn't. It didn't have calendar, e-mail or contact capabilities so I figured that I'd STILL be carrying a PDA, phone and now the iPod Touch all at the same time. All that equipment requires a big purse and it gets heavy!
Shortly before Christmas, Apple upgraded the iPod Touch firmware to support e-mail, calendar and contacts! YAY! Now it was a no brainer to use the iPod Touch to replace my PDA! The only feature that I wish that it included is a data card (that I would gladly pay a monthly fee for) so that I could access the Internet/e-mail outside of WiFi hotspots. I'll be upgrading to the next model if they ever offer that feature!