Yeah, the lens is the problem. Megapixels don't mean jack when the rest of the camera sucks. I wouldn't say "my phone can do everything yours can" really, because honestly, the iPhone is better as a touch phone than the Touch is. It just has crappy EDGE data, a bad keyboard, and no 3rd party app support. 3 things I couldn't live with. Next time, just tell him your 20-key XT9 keyboard, EVDO speeds up to 2mbit, and ability to add a plethora of applications to your phone makes it better than his.