Best mp3 phone- iPhone? (Looking to get new phone)

Tweet

So, I am looking at getting a new phone. I was really thinking about getting the iphone as the 3G version should be coming out soon. I really want to be able to listen to music on the phone. If i don't get the iphone i'll probably get the itouch. I have heard that the iphone is great but the service with AT&T isn't very good. I was also wondering, does the iphone fit comfortably in your pocket. I currently have a Nextel flip phone, so i'm used to a fairly small phone. I'm sure i can get used to a bigger one, but i was just wondering if it fits comfortably in your pocket or not. Also, can you plug the phone into your laptop and surf the web on the laptop using the iphone's EDGE (soon to be 3G also) capabilities? Are there any other phones that are good for listening to music on. Oh, i would also like to be able to watch videos on it. So, at least 16 GB is probably a necessity. Thanks in advance for the input.