Your statement is more fallacious: the iPod Touch has the same hardware, but a TCO exactly equivalent to its retail price. Similarly, you could buy an unlocked iPhone and then just turn off the 3G radio. It would still be strictly more powerful.
To pick nits, the iPod touch lacks the camera and GPS. An unlocked iPhone is more expensive than a locked iPhone. None of that makes the grandparent post correct, but it does bear pointing out that your alternatives are either inferior or cost more than $200.
