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iphone is $200 with a two year contract with att.
psp is $169.99
ipod touch is $229

ipod/iphone
pros:
thin, very easy to use, good web browser, youtube app, wide support of apps, email client, music, videos ( limited support -codecs) wifi, internet anywhere anytime(iphone).
cons:
no flash, java which limits internet use. all touch screen( could be pro or con, but for me it is a con), ok battery life. contract(iphone), limited memory

psp
pros:
games,music,web browser(not sure about flash),wider support of codecs, simple os(not hard to use), skype, price, upgradable memory
cons:
no internet anywhere anytime(not a cell phone), heavy, ok battery life

hopefully this helps you, but for your uses I suggest psp.