I'd like to get a device for testing iPhone apps that I can wipe at anytime. A 1stG iPhone or iPod Touch is ideal. With an iPod touch, I'll pay for OS upgrades. However, on eBay, iPhones are going for $300+. Used iPod Touches are about $150-$200.
I want to avoid paying a monthly fee for the iPhone, which means I'll be limited to wifi for Internet connectivity. That should be fine.
Is there a cheaper way to get a test device or any other suggestions?