Debating between iPhone or iPod touch?

I'm trying to decide between a iPod touch 64gb or 64gb iphone
And the price for the iphone does bother me since its very high to get it unlocked. But at the same time, its both a phone and the ipod touch. I need an opinion on what i should do.

It's pretty simple, so you need a smart phone or do you just want something for music?

An iPhone can do both, play music and you can make calls.

Iphones are just iPod with SIM card slots but with more features. IPod are like iphones but this is, it doesn't have SIM card. Thus, iPod are for those who likes games, musics, apps, internet and blah blah blah. IPhones are for those who liked additional feature they call it SMS.