The iPhone is now available with 8GB (at $399US) or 16GB (at $499US) of storage.The iPod touch is now available in three models; 8GB ($299US), 16GB($399US) and 32GB($499US). Note that the 16GB iPhone and the 32GB iPod touch are both $499, while there's a one hundred dollar difference between the 16GB iPhone and the 16GB iPod model.
I guess your hundred bucks either buys you a phone or double the storage space. The choice is yours.
[Nik notes from across the pond: the 16 GB iPhone is available in the UK for £329, and the 32GB iPod touch is also £329 (inc VAT).]
Thanks to everyone who sent this in!