If your looking at an Ipod touch, just get the Iphone. Prices came down and now they're the same. The price drop leads me to believe its a 2nd gen phone (or maybe 1.5 with the glitches worked out)

As far as Blu-Ray dominating the market. I dont see that happening. Every blockbuster I've been at rents both BR and HD movies. I forsee a combo player coming out before that happens. Plus movies are usually coming out on both formats anyway. And with prices of stand-alone units dropping, might not be that expensive to get both