The iPhone 2.0 software for the iPod Touch can now be downloaded from iTunes for $9.95. This will enable iPod Touch users to download and use applications from the App Store. There are over 500 third-party apps on the App Store now and about a quarter of these are free. Users of iPod Touch may not be able to benefit from a new hardware or a price downgrade but at least games on the iTouch will not be interrupted by an incoming call.

[via macrumors]