I was amongst the first to call the iPod Touch an iPhone without the At&T baggage. Little did I know the iPod would soon become a … phone. 
. If the news is true, you can soon use a VOIP application to make calls on your iPod. Somehow I doubt AT&T is happy about it…
Details at: Gizmodo, iPod Touch Mods, CrunchGear, ParisLemon, Ubergizmo
How about someone making a GSM/HSDPA iPod add-on? I see a fantastic market for it 😉
I can see you create the zPhone 🙂
Tres cool!