That's weird that the Friendz app costs money because a while ago, Microsoft came out and said that no one could charge money for apps that utilized xbox live. They even made Apple change the price of some of them.
As someone who had an iTouch and has an iPhone let me say this: I don't think 3.0 is worth the 10 bucks for iTouch users. The irony is that all the features of 3.0 are made for the iPhone really (Irony being that iPhone users don't have to pay for it).
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