Which one should I get: IPhone 4 or IPod Touch 4?

Okay, so this question may seem pretty stupid considering a lot of would go for the IPhone. I personally do want that more of course, but the IPod Touch is cheaper. I heard that it's sooo similar to the IPhone, plus there are apps that you can use to call, basically making it the IPhone. Plus getting the IPhone, I am in the middle of a 2 year contract with Verizon, so I don't know if they would charge a lot for me to do that. So put yourself in my shoes and which one should I get?! Thanks so much:)