I got the 64 GB iPhone partly because it can be a touch (iPod). And in October I will get a new 64GB phone and my 4S will live in my car as my music player, always on power.
I was glad when they finally started selling 64GB iPhones. That's mostly why I got a 4S. My husband inherited my 4, which he now uses as a phone. I need at least 64GB for a media player. My husband leaves an old iPod in his car, with 80GBs. I usually listen to audiobooks, so that wouldn't work for me because I often like to keep listening when I get out of the car.