Like most iPhone and iPod Touch users, I upgraded to the new iPhone OS 3.0 operating system upon its release. The difference in my case was that, as an iPod Touch user, I had to pay $9.95 for the update to OS 3.0. The update was free for iPhone users. That doesn’t make sense to me. I’ll tell you why.
First off, many of the new features in OS 3.0 are specifically for the iPhone hardware. This includes things like video editing, camera-specific updates, MMS text messaging, GPS navigation, and more. As a mere iTouch user, I can’t access any of those features.
Secondly, my iPod Touch (2nd gen.) cost more out of pocket than an iPhone! iPhone prices are subsidized by the wireless carrier (AT&T in this case). You can now get one for as low as $99, or $199 for the new iPhone 3GS. The iPod Touch costs more than either of those!
Considering that, and more, the new operating system should have been free for Touch users too.