I thought the reason they weren't charging for iOS 4 is that the accounting rule they used to say they had to charge before was changed. So now it's free. Ironic though, that those that likely have paid the most for updates, especially those who bought the iPhone app package, can't get iOS4 without buying a new device. Looks like this will be my first upgrade, if they make the Touch 4 like the iPhone 4 (same processor, screen, 802.11n and at least the back camera.) Probably needs the compass and gyroscope too. This would be the first one that really says to me that I need to upgrade my first gen.