$390 for 32gb is obscene. It may have wi-fi internet like the Touch, but it won’t have the app and game development to compete. Set the wi-fi aside it’s still just a music and video player, and although the Sony players have top-notch SQ and features/tweakability, it’s hard to justify paying that kind of price premium. With lightweight, highly portable netbooks now available for $300 (and dropping) offering much more user friendly wi-fi/Internet, paying such a premium for limited usability, small form factor wi-fi is much less appealing.
…Adding, just to be clear, 32gb flash memory retails for under $100 and bulk, wholesale pricing for large manufacturers is probably less than half the retail price. There is no reason why a good quality (Clip, Fuze – hint, hint Sansa) 32gb music player shouldn’t be on the market for well under $200. Why we’re still largely stuck in an 8gb player world (with a few 16gb and the rare 32gb) is beyond me…