iPhoneAtlas compiled a list of differences between the new iPod Touch and the current iPhone.
Amongst the differences:
- No Email, Maps, Stocks, Weather, or Camera in the iPod Touch
- Double tapping the iPod Touch's Home button twice when it is sleeping brings up touch controls to control your music
- iPod Touch has separate Contacts app and separate Video app. On the iPhone, Contacts is built into the Phone function and Video built into the iPod function.
- No Microphone or Speaker on the iPod Touch
- Headphone jack on bottom of iPod Touch and is not recessed (unlike the iPhone)
Apple has posted a guided tour video detailing the functions of the iPod Touch.
Apple is expected to release an iPhone update to add Wi-Fi iTunes song purchases to the iPhone. The "double tap" Home button functionality detailed above could also easily be added in software to a future iPhone update.