You and others on HN are probably not the target for the iPod Touch. Just spend some time with my sister and her friends and you'll quickly see that a bunch of them have iPod Touches and most of them are just used for playing music (with a few games here and there)

My sister also has an iPhone, but she's not really tech savvy enough to download apps and actually use them. She's downloaded a few apps, but most of the time she just uses her iPhone as .... a phone.