Of course they matter you simpleton!
8GB or 16GB.
Wow!!! That will fit not even a 1/4 of my music.
And the IPhone Isses:
* lack of any real storage space (you can get 16GB USB pens nowadays)
* battery performance on the iPhone 3G is abysmal
* buggy applications
* issues with I-Tunes
* reception issues
* Iphone Enterprise for Exchange has massive security issues
* it goes on and on...
The IPhone is a hybrid, and it seems it does not execute any of its multiple functions well at all.
So your statement that the Ipod does not matter is quite frankly... rubbish.
Unless, of course, you like to move backwards instead of forwards.
You have your 16GB of music and vids.
I'll sit back with my 160GB, and I am certain there is more storage space to come.
You can't replace an audio/video device with a phone dude.
Not for a few generations yet.
Does the iPod Matter Anymore?