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You can also wait till the 5800Xpressmusic comes out. It has a 3.2inch screen and has great battery life. I cant see any handset beating it in terms of battery life in the next 3months or maybe even 6months. Good battery backup is a must since surfing on wi-fi consumes a lot of battery.
How is the iPhone ideal for media playback?
Can it play a DivX file or a XVid video file?

U can go for the Samsung INNOV8 too though i doubt if it will fit in ur budget.
 
P.S: I forgot to tell u all that I am an iPhone hater. For me it is nothing more than an overpriced price of crap. The iPod Touch is a far better proposition though its music quality is nowhere near the Cowon D2.
 
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