Ipod Touch - Exactly What is It?

I am not a big cell phone user but do like to surf the net, play with apps and listen to tunes and audiobooks in my car.
I currently own a G1 Android phone but have been seriously thinking of buying an iTouch
After looking att the site and specs I have an idea of what it can do but want to know what it can't do and do I need to pay any extra monthly fees for internet access, wifi, etc.
Any information that you can provide would be appreciated
thanks,
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I have wifi at my house and also live in NY so my service provider, Optimum, provides free wifi whenever and wherever it is available.
Besides the lack of the phone capability, how many apps are available (not games), how fast does it surf the Net? I bought the G1 for a few reasons - my wife already was a t Mobile subscriber and for the G3 speed when surfng the Net.
The major problem with the G1 is that is does not synch with the USB port in my new car. I have a 2009 Civic EX and any of the newer ipods can easily synch with the USB port and I have tons of tunes, books, podcasts that I can listen to.
I really love my G1 but am going back and forth as to whether to cancel my contract with T-Mobile, take the early termination hit but can make it back easily by selling the G1 online. Then I can pickup an iPhone and have an all-in-one product.
Lastly, I current pay about $75 month for the G1, this includes all services and data fees (I never text or IM). As I said, I don't make many calls at all. I use it mainly to surf, listen to music and screw around with the apps. Any idea what a plan may costs with the iPhone? And, more importantly, how fast is their G1 network?
Sorry for the long post - thanks in advance,
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