"Alright, well first I would like to thank all of you for your replies and opinions. I have decided and he has agreed that we are going to get him a new (cheaper) phone with music when he is a little older. He currently just uses my cell phone to talk to others and it makes no sense now to buy a phone that has activation/other issues anyway. I am going to take him to check it out anyway at the store as when he got his iPod. Plus he does still have the paper one anyway. Thanks again and I am glad we made the right decision."
Since it does sound like you are kind of serious about all of this, how about this:
Buy
yourself an iPhone, and then give him an "allowence" of being able to use it for two or so hours a week
with you. For example, you could use the Notes application to teach him words, reading and writing (for example have a game in which you are only allowed to write notes to each other on the iPhone, passing it back and forth and no spoken words allowed) or adding and subtracting using the calculator. Or you could get a headphone splitter and share music you like with him, or watch some iTube, alternating who gets to choose. Stuff like that. Make it a father/son thing with genuine educational value thrown in he doesn't even realize he's getting because he's having fun.