Nokia has just announced the 5235, which is nothing more than a 5230, except without GPS. You lose the ability to see where you are on a map, but you gain “Comes with Music”, which is Nokia’s way of giving you 1 year of unlimited legal downloading. Yes the files are laced with DRM, yes the Ovi Music Store is a bit clumsy to navigate, but hey, a year of unlimited music for what is essentially the cost of an iPod Touch after taxes is pretty damn attractive. Unlike the iPod Touch, the 5235 comes with quadband GSM/EDGE, dualband 3.6 Mbps HSPA (2100/900 MHz for Europe, 1900/850 MHz for Australia, and 2100/850 MHz for the USA), and it also has a 2 megapixel camera; sadly there is no support WiFi. The 111 mm tall, 51.7 mm wide and 15.5 mm thick body has a 3.2 inch resistive touch screen with a resolution of 640 x 360 pixels, and the 1350 mAh battery should give you at least a day or two of heavy usage. Expect the 5235 to arrive on store shelves in Q1 2010.
Update: My mistake, according to the Nokia 5235 product page it does have a GPS receiver inside. Strangely it was not mentioned on the specification sheet for press people. Thanks to @chilko, Editor in Chief of Mobile Bulgaria for pointing that out.