Let me introduce you to the new iPod Touch.
It looks and feels exactly like an iPhone, although the lack of phone features mean it's a couple of millimetres thinner. The headphone socket has moved to the bottom, too, and it's not recessed like the iPhone so you'll be able to use non-apple headphones without an adapter.
It's very slightly shorter than the iPhone too, but has the same 3.5in screen that makes viewing photos and videos a joy. And of course it shares the same groundbreaking multi-touch interface. I won't go into too many details - try it for yourself.
There's also a Safari browser on the new touch and in some ways it looks like more fun than browsing on a PC. There's the new Wi-Fi iTunes store, too, if you like buying music from Apple (and now that they offer DRM-free music, I do). Not having to pay any extra to buy tunes on the move will certainly give the mobile networks something to think about - as will not being hobbled by low-quality mobile music.
I guess the one downside is the capacity - but 16GB will hold a lot of music and movies. I'm certainly willing to make the sacrifice - I'll just have to weed out the rubbish from my music collection. After all, only great music is worthy of such a gorgeous music player.
Look out for it! it'll be shipping on September the 28tha nd out at £199 (bargain, seens as though it's phoneless iphone... they should have called it the 'i') i've allready started saving up!