Yeah, they're mostly a scam, but they're so damn convenient. Having one device rather than two to three is nice. GPS wherever you are, Music player wherever is good too (Especially good since streaming services are growing).
I don't [i]need[/i] my smartphone, but it is truly useful.
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I would definitely like to have a GPS, but not when I think about how much it would cost to use. On another note, I actually really like having two separate devices: one is my phone, and one is a digital Swiss Army Knife of sorts (don't make me list all the things I use my iPod Touch for, lol!). I'm glad I don't have these two functions merged into one device because when my battery dies or if/when I loose a device, I'm not as helpless as I would be if I had a smartphone. If my iPod Touch gets stollen, I still have my phone; if my phone breaks, I still have my iPod Touch.
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The GPS wasn't super useful until I went to college. Since I go to school out of state, having it is immensely useful. I kinda agree with the reason for having two, but the opposite applies for having one. Less to keep track of, only one device to charge and such.