I'd use that Storm with your current plan as the price (and coverage) seem to be right for you.

Can I just say this though:

I used a second gen Ipod Touch (not phone) for the first time a few weeks ago (my Niece has one) and have found it to be extraordinary.

I believe the better buying strategy might be - get whatever phone you want for Price/Coverage, and buy an Ipod touch for all it's amazing Apps, Wi-fi, Touch screen UI, and ease of use and flexibility.

I have a pre-paid POS phone I use for business, and will get the touch as soon as I am able.

(I hope this slightly different take on things helps, though I'm well aware it might not! LOL)