Can iphone be used as an Itouch if I don't like hone features

I am getting an Iphone but update my mobile regularly. What I want to know is that if I decide I don't like using Iphone as a phone can I take my sim card out and simply use Iphone as an Itouch with all Itouch application functioning as normal..
An extension of the same idea, could I simply download Itouch update onto my Iphone, loose the phone options and have same screen access as itouch. Would wifi still work etc.?
This will just mean I will get much more long term use out of my iphone/ipod as I keep my ipod but update my mobile often

You don't have to remove the SIM. Set it to airplane mode, then turn on WiFi. You can also lock the SIM by enabling a PIN for it.

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