Or get a cheaper iPod touch 4th gen and a nice touch phone separately.. No issues that way.. Except the iPod's camera is a little worse but not by a lot..

I read multiple reports recently that the back glass of iPhone 4 is particularly vulnerable to drops even from waist heights (as compared to the earlier 3G and 3Gs models).

Although it is a very nice phone, it may not be a bad idea to wait around till a newer version comes out in early 2011 (and probably get a used 3Gs for cheap for immediate use).

Despite this troubling increase, it's important to take the accident rate into perspective. Overall, the iPhone is still a very well constructed device, with a non-accident malfunction rate much lower than most other consumer electronics.

In SquareTrade's previous study comparing smart phone reliability from November 2008, we found iPhones to be far more reliable than Blackberrys and Palm Treos. We will be updating this report soon, and we'll have data on the latest Android phone models. It may yet be seen that even with the double glass, the iPhone has an overall failure rate that is still better than the competition.

Personal opinion.. I don't mind carrying 2 or even more gadgets.. As long as everything is specialized in whatever their task... That's why people probably buy a good camera and a phone separately.. Good camera phone is WAY more expensive than if bought separately..