Apple iPhone for $229.00 ?
According to C-Net, the folks at TruPhone have developed an iPod Touch application that turns the MP3 player into a WiFi phone using the Truphone system. Users can, or will be able to, make calls to Skype, TruPhone and GoogleTalk Messaging.
Not quite an iPhone, but pretty darn close. And Apple is making the app available on the Apple App Store.