Joshua Topolsky brings up the lack of competition in his fantastic review of Apple’s new iPod touch:
Don’t get us wrong, the touch isn’t without faults — the lack of GPS and a fairly low-quality still camera come to mind — but there’s nothing major here that gives us pause (and frankly, nothing else like it on the market). With the addition of HD video shooting, the new Retina Display, and a faster A4 processor, the touch has just gone from “nice to have” to nearly irresistible.
John Gruber has harped on this for a while now. There just isn’t a single competitor to the iPod touch. An inexpensive, contract-free option would help Android and webOS grow. I simply can’t understand why no one has stepped up to the plate.