The main thing that drives the Touch is the fact that it's connected to iTunes, with all the music and apps. Android phones can compete with the iPhone, becaus

The main thing that drives the Touch is the fact that it's connected to iTunes, with all the music and apps. Android phones can compete with the iPhone, because like it or not, Music/Apps are still largely secondary to why people buy phones: voice calls and text messaging. I chose Droid over iPhone partly because i can get it much cheaper on my Verizon family plan (also, unlimited data), and I need a phone, I don't need an iPod Touch.. But to really, viably, compete with the iPod Touch, you need three things: 1) An as good music experience as iTunes. So far, no one has that. 2) An almost as good App Store. Android market is maybe the closest, but it's still way off. 3) Something else truly magical that iPod Touch doesn't have. No one else right now is really capable of hitting one of those 3 things, let alone all of them.