I have an iPhone, but not an iPod. I can send text messages, emails and go on the internet with my iPhone. I don't think you can do those things with an iPod, which I believe is for only for playing music and videos.
As for the earbuds, they're too big for my ears as well, so I just ordered some online that look smaller. I've seen the ones in WalMart, but haven't bought them. The colorful ones are around $20. and look as though they would fit comfortably.