As most of you know, I sold my IPhone months ago and thankfully am rid of ATT for good hopefully. A fella had one of the new 4.0 Touches on Craigslist sealed for $150, so we took a chance and I'm glad we did. It's so much faster than the old ones. To quote my 13 year old son, here's a few pros and cons.
Front and back camera
The brightness level is way less than my 3G or Ashley's 2G
The fact that the alarm and calculator have to be opened from a Utility button. I know it's lazy, but I liked having them right there to figure up gas mileage or whatever
The much more complex mail system. I miss the old style.
I do miss my IPhone, but the touch is pretty darn nice all the way around. It's a suitable replacement to be sure.