iPod Touch 8GB works just fine anywhere you have wireless. Better in most hospitals than cellphones, esp in OR’s/ED’s where there is weak reception with any carrier and searching for signal kills your battery.
Speculation suggests AT&T contract with Apple is ending 2010, so if you buy an iPhone now you will be stuck in a two year contract next year even if another carrier with a better network (i.e. Verizon) gets the iPhone.
I never use the smartphone for apps anymore since getting the iPod Touch, which is far better, far cheaper (for the apps) and always has a connection when I need it anyway (in the hospital, with wireless). The only reason to keep a data plan and smartphone is if you absolutely must be able to check email even when you are someplace without wireless (like in your car, etc).
Skype is a free app for iPod Touch and you can make free voice calls to anyone else with skype installed with the iPod Touch if you buy the headphone+mic for iPod Touch ($39). Call quality is better than mobile/landline.