I have the same cellphone as well. I should have gotten the iphone 3G but cant afford to switch carriers so i just got an ipod touch 2G. Satisfied all same features except no phone or navigation.
ive played around with my buddies iphone, but rather like mine alot more.
I found the iphone works better as a multimedia player then the instinct, but i dont use my phone for listening to music or watching movies.
And when me and my friend tried to use our phones at the same time i could get call reception where he couldnt.
most of the features were the same, although the instinct did have a better GPS in my opinion
if i remember correctly their the same price
and lastly and most important in my eyes. I hate apple beyond all belief, yep im a apple/mac hater...