Are you looking for music and wifi (like the ipod)?
There's no reason you can't just buy like a Samsung Galaxy Ace (~ $195). You can (if you have a legacy cell phone) just pop your sim in - no need for expensive data contract etc.
That's pretty much what I do - I sold my ipod for an unlocked phone. Have NO data plan, just a TMobile 'phone' that I pay minutes etc for. Really cheap and I get a great music player, WiFii, and standard 'cell phone' for less than an ipod.