I have both and glad I do. The Touch is a better device in every respect except for games.

* iPod's have much better audio circuitry and DAC (digital to analog converter) than the PSP, so the audio quality is quite clearly superior, something which is very important to me at least.

* I can't tell which has better video quality, but the iPod's touch controls make it simpler to use, and it supports more video formats out of the box.

* Web-browsing on the Touch is fun while on the PSP it's... yuck. Google maps on a Touch or iPhone is an amazingly fun activity in itself.

* Games however, it's obvious the PSP is far better. I never use my Touch for games at all, just music, occasional video, and occasional web browsing.

The newest Touch models now have an accelerometer like the iPhone which could make the games more interesting.

It's true though, it's cheaper to get your PSP a big mem card and only use it for music and video. I mean, you don't *need* an iPod if you already have a PSP.

oldsan