For the same price w/o a stupid mail-in rebate you can get 4 times the storage space with an iPhone 3G. Granted I know it's a different OS, but to the average consumer who isn't tied to one OS or another what is going to make them choose this device over an iPhone?
This pricing is not very competitive at all in my honest opinion.

Now I have to decide if I'm going to wait for them to drop the price. I shudder to think what the Touch Pro will cost.