You are completely right, and if that was the case, the iPhone would be a better option for most. However, I would get the peel (if only Verizon had sims) since I already have an iPod, and $10 for any speeds of unlimited would be a huge plus. The audio issue doesn't affect me since I don't listen to music on my iPod hardly at all. tl;dr, the Peel is a fantastic alternative for those who have an iPod and don't have the extra cash for an iPhone.
I received a unit for review. I don't know about this peel, but the peel 520 II gen (which is made by the same company) has very good call quality.
Nice review! This is a big help for me cause I'm planning to buy a peel for my iPod Touch this Christmas. This is your first review of an iPod peel, I think. I hope you will also make reviews for other peels. The Skyroam Gmate will be an awesome review although its not really a peel. Also, Yosion and C Apple peel.