Considering how much AT&T charges for iphone plans his parents are probably going to swipe the gift card to cover expenses.
Apps work on the iPod Touch, too, unless they utilize iPhone-specific functions like the voice mail and such.
I am getting tired of this AT&T charges too much canard.
Those of us who still have the 1G iPhone are paying $20 per month over our voice phone plans for unlimited data. 3G iPhone users are paying only $30 per month over the voice plan. That is completely competitive with every other wireless company's plans. Voice plans from AT&T for the iPhone start at just $29.95 per month which with a new G3 iPhone would be $59.95 per month.
AT&T's 450 minute voice plan is just $39.95 with a two year commitment. Add the unlimited iPhone data plan at $30 and the combined plan is just $69.95.
Sprint's unlimited email and web access plan for Blackberry is $39.95/month plus a 450 minute voice plan for the same two year commitment AT&T asks which totals $79.95.
T-Mobile's unlimited and web access plan for Blackberry is $$39.99 plus one of their voice plans... which seem to offer more minutes for comparative prices ... they don't offer a 450 minute plan... but their 600 minute plan is $39.99 which makes their combined plan $79.98.
Verizon's unlimited email and web access plan for Blackberry is also $79.95 including a 450 minute voice plan.
So, comparing Apple's and AT&T's iPhone plans to less capable plans from other providers, we find that the iPhone is $10 less expensive per month than the others.
If you don't want to pay for a data plan, fine, but stop claiming that the iPhone is somehow more expensive per month than the others.