Apple Event: 802.11b/g iPod Touch - $299 8GB, $399 16GB

And here's the big news... Ever think an iPhone without the phone and the big contract would be a sweet device? Well, here you go. Spec highlights below:

• Same tilt- and touch-based interface as the iPhone.
• Same size screen as the iPhone, but the device is even thinner at 8mm.
• Includes 802.11b/g Wi-Fi.
• Includes mobile Safari and YouTube, same as the iPhone.
• Also lets you browse Facebook.
• Standard iPod dock connector.
• Normal, non-recessed headphone jack.
• Rated for 22 hours of audio playback and 5 hours of video.
• 8GB model for $299.
• 16GB model for $399.

And then there's this event's "One More Thing"... (tm)

• iTunes Wi-Fi Music Store. Lets you listen to 30-second previews over wireless and buy tracks directly from the device. Same selection and pricing as the iTunes Music Store. Tracks sync back to your computer when you dock your iPod.
• The Wi-Fi Music Store will be available on the iPhone later this month through a free iPhone update.
• There's also Starbucks integration. If you're in one (or, presumably, near one... so pretty much all the time) an extra button appears on the iPod Touch menu, so you can find out what songs are playing in the background there and buy them, too.

Both models will be available in a few weeks and are shipping this month.

(Read more about today's Apple announcements in Today@PCWorld: New Pricing for the iPhone, Classic iPod Changes and Prices, New Shuffles and Wider Nano, and Apple Sells Ringtones. And here's our analysis of what's most interesting of the many announcements made by Steve Jobs today.)