One more thing turns out to be the iPod touch. Basically an iPhone without the phone. A similar user interface to the iPhone. The multi-touch glass display and 802.11b/g Wi-Fi and a Safari browser.
We can expect the hacking community to crack this baby open and add extras to this device just like has already happened with the iPhone. Much of the hard work has already been done.
The addition of W-Fi and Safari is a brilliant move by Apple. They are reported to be on target to sell 1 Million iPhones by the end of the month. The iPod touch is only going to accelerate the growing popularity of Safari/WebKit. This move on its own may be enough to seal the iPhone/WebKit's position as the defacto Web 2.0 mobile terminal.
The only surprise is that the device didn't come with a hard drive. At least they offered a 16GB version which will be priced alongside the 8GB iPhone at $399.