It's a great phone. Internet works great over both wifi and 3G, especially with Opera Mobile 10 and some apps like GMail, Google Maps, Skype etc. Ovi maps is great, the awesome Viewranger is available for it as well. Good as a phone – decent hands-free too. 3.5mm headphone jack is very useful.
Touch screen works great IMO – no issues with precision at all – having slight fingernails helps I guess. Trying to use it with just fat finger ends probably won't be massively enjoyable. And unlike the iPhone screen you can use it with gloves or through a ziplock back which makes it great for using in foul weather. Also wins over the iPhone in other ways, like being able to carry a spare battery or even fit a higher-capacity one, so you can use it on a weekend away without nannying the power, and of course it supports Flash and Java.
Also works fantastically as an iPlayer device.