i have a linksys router and have had horrible luck with the PS3 with it. I can basically never get a stable connection and playing online has become somewhat of a joke.
Yah, the wifi is quite the kicker for the iPod Touch. I tend not to use EDGE service too much on my iPhone, but whenever I'm in a free wifi hotspot, I usually always browse.
I convert all of my FLAC to ALAC for convenience. Then I use Doug's applescripts to get from ALAC to AAC easily.
Oh, and I like my Invisible Shield on my iPhone. Works well.