Well, I went about a week+ to see how my life would be without the light of the iPhone.  I was hemming and hawing quite a bit on whether or not get a new iPhone.   Why? Here are the reasons:

1. I need more space than 16GB to just store my music and only the iPod Touch was being sold with that amount of memory. What would be the point of upgrading if I still can’t have all of my music on the device?
2. You say the new iPhone has GPS. But Apple did such a good job with the upgraded software that the cell/wifi location mechanisms work pretty awesomely. So much so that the Apple Store guy last night was trying to convince us that the Touch had a GPS chip (which it doesn’t).
3. For some reason, they no longer bundled the SMS plan in the monthly data plan. Now I wouldn’t have minded so much if Apple had delivered the Push Notification Service; alas, that project has blown up and so SMS or email is the only way to get notified if those applications are not in the foreground.

So why did I break down and get a new iPhone last night? Here are the reasons:

1. The major reason was predicated on the fact that I had an old iPhone and feature to feature it was good enough.
2. Have you tried SMS on an old style phone? It’s brutal. T9 helps, but the menu navigation is really tough.
3. I miss the alarm system. I was forgetting to do things because my alarms weren’t firing.
4. I couldn’t play games on the train.
5. For listening to music, I had an old classic classic iPod and that was annoying because the pause button on the headset didn’t work. I still had to unlock it and use the wheel.
6. It would be more convenient to do iPhone development rather than just using the simulator. That being said, I probably could have borrowed the girlfriend’s iPhone, but I wasn’t really comfortable with that.
7. I had to use the Apple TV IR remote which just isn’t as cool or usesful as the Remote program

Were there an positives of the old phone?

1. SMS messages were sent faster. Took about 1 second whereas an iPhone takes a couple seconds (probably just to animate that bar).
2. I don’t get the double SMS message, which seemed to plague the iPhone
3. My battery charge lasted most of a week.

Final thoughts? Well, the week was rough but I made it. I was kind of disappointed that the Apple Retail Store dude didn’t know the product line. And yes, I locked my iPhone with the code and the erase after 10 retries so that I won’t have to worry about my data again.