yah, but you have to pay extra money for the sd cards, and $320 is already expensive. I saw a 16gb ipod touch for $250 on amazon.A 16 gb sd card is $100. 16gb pandora=$420 16gb ipod touch=$250
16GB SD cards are coming down. And you wouldn't have to buy one of them anyway - to get 16 GB on a Pandora, you'd just need 2 8GB SD cards (the Pandora has 2 SD slots) - and they are pretty cheap.
A quick search of NewEgg shows you can get a 8GB SDHC Class6 card for $25 (or less if you want to wait for a rebate). So it would be $330 for the Pandora + $50 for the SD cards - $380 for the 16 GB Pandora. Or you could go even cheaper and get 2 GB or 4 GB cards and just swap them out.
But with shipping and everything, let's say it's $400 total for the 16 GB Pandora. For the iPod Touch, you'd pay $250 for a *used* system - the Pandora is brand new, (I really doubt that "Just Launched" Amazon seller is telling the truth - you'd be lucky to get a used iPod - and more likely get a $60 iClone with no WiFi). For a new 16 GB iPod Touch is at least $300. And you'd have no way to play games other than touch screen. Add to that the fact that the screen is smaller and lower resolution, and that part of the screen will be taken up by controls - you're losing out.
To get something close to the Pandora, you'd have to buy an iPod and a PSP - and then mod the PSP to play homebrew apps and game. That's at least another $149. Or you could buy a Nokia N810, which is selling for around $300 some places. But you'd have to buy the SD cards again - and the N810 only has one usable SD slot - so you'd have to buy the 16 GB on one card instead of 2.... And, again, no game controls.
For the iPod Touch, you could wait for the iControlpad that Craig is working on - but it's not going to be free - so you'd have to add that cost to the $300 you spent on the iPod. And you still wouldn't have the apps, the power, the resolution, the keyboard, or the expandable storage of the Pandora.
And you should know, I'm seen as the Pandora detractor 'round these parts. But it's mostly because it's not ready yet. The system, as advertised, is pretty much unmatched for the price. And - it's unique combination of design elements really makes it unmatched at any price.
That all said - if you don't plan on retro-gaming on your machine - and you don't mind risking $250 on an unknown seller with a hard-to-believe price - and you don't plan on typing that much - or surfing the real-internet that doesn't fit on a 320 x 480 screen - or ever needing more than 16GB, by all means, get an iPod Touch.