I almost got a smart phone (aka iPhone or Android) on my most recent new-every-2 in June. The "dumb" phones are going the way of the do-do bird, there weren't very many to choose from. However, like you, I decided I couldn't afford the high cost of the data packages, so went with a "dumb" phone this time. I really, really want an iPhone, but am going to wait until my next renewal. I'm sure by then there will be nothing but smart phones to choose from.
I have an iPod and use it constantly. I can't live without it. Apps, games, movies, tv shows, music, things to keep me entertained when I'm waiting to pick a kid up, and it helps me relax and fall asleep at night without disturbing my DH.