One year in japan- iphone/ipod touch?

So...apple's ipod touch and iphone look really nifty, and apparently generation two has some sort of native kana/kanji entry functionality, but I'm wondering whether:
a) There's any way to unlock the new ones or transfer my att contract to japan.
b) Whether you can get one w/out a contract while in Japan, and whether that one would be able to come home with me.
c) I've heard that keitaidenwa are essential in japan; that everyone texts, uses mobile web, mobile payment, etc. Can the iphone handle this sort of functionality?

Basically, I'm trying to figure out whether it would be a big boon for a year in japan, or just something different than everyone else has that would make life tougher.

David,

a) There's any way to unlock the new ones or transfer my att contract to japan.

Highly unlikely.

b) Whether you can get one w/out a contract while in Japan, and whether that one would be able to come home with me.

Even more unlikely.

c) I've heard that keitaidenwa are essential in japan; that everyone texts, uses mobile web, mobile payment, etc. Can the iphone handle this sort of functionality?

It doesn't have the saifu-keitai (payment) functions such as Mobile Suica, nor does it have one-seg TV capability, both of which are pretty serious omissions, in my opinion.

by Japanese mobile phone standards, the iPhone is really, really lacking as Dave said. In my mind, the only reason it's popular is because it's an Apple product and nothing else. I'd for sure just get a regular (and more technologically advanced) phone for the same price. If you're only going to be here for a year though, just get a cheaper phone, they're still pretty nifty and it won't cost as much to get out of your contract... (depending on your carrier)

apparently generation two has some sort of native kana/kanji

Any generation, once upgraded to firmware 2.0, will have this capability.

a) There's any way to unlock the new ones or transfer my att contract to japan.

engadget.com - news has it today that the 2.0 3G has already been jailbroken (unlocked). Upcoming release of the firmware unlocker will be likely.

Keep in mind that Softbank - the primary/only iPhone provider in Japan - may or may not allow foreigners to use any non-Softbank sold iPhone with their service plans. You'll have to ask a Japanese friend in Japan to ask Softbank as to their current policy. Generally, you'll want to go with the phones they offer there.... but they may be getting more lenient on this point.

b) Whether you can get one w/out a contract while in Japan, and whether that one would be able to come home with me.

See Softbank's site to see if there's any 'unlocked' versions you can buy (unlikely given that almost everything in Japan is locked and remains so). However, given that the Jailbreak for 2.0 3G models has been shown, it's likely that once you bring a Japanese iPhone from Softbank home, you can then easily unlock it.

c) I've heard that keitaidenwa are essential in japan; that everyone texts, uses mobile web, mobile payment, etc. Can the iphone handle this sort of functionality?

Yes, pretty much essential. You do not want to be stuck anywhere trying to find a public phone to get in touch with employers, friends, etc.

With Softbank's White Plan, this may also be a great way to go (if you can get it -- unlimited calling during certain hours for a cheap rate).

Most foreign phones that are non-iPhones (eg. Nokia N95, 6233, Samsung Z540, 510, Sony W760, etc) that have WCDMA 2100 support (THEY MUST HAVE THIS JAPANESE FREQUENCY SUPPORT OR WILL NOT WORK IN JAPAN!!!!), will allow for SMS/MMS/EMAIL just fine. I've roamed over on T-Mobile USA, jumped right onto NTT Docomo and Softbank Japan upon arrival in Narita, and was able to SMS/MMS/EMail just fine.

The iPhone has no MMS.

Mobile payment is different - you MUST USE A JAPANESE PHONE PROVIDED BY A JAPANESE CELL PROVIDER! Nothing outside Japan exists today that allows for mobile payment (eg. swipe and go) in Japan on their common systems (eg. Suica, Edy, etc). They may have a cow if you don't have a Japanese credit card... but ask and see.

Mobile web. If you're just browsing English pages, you'll be fine on all WCDMA 2100 phones in Japan. For Japanese sites, you MUST use a phone that has full support for the Japanese language (Kanji, hiragana, etc)!! Commonly, Nokia S60 & Windows PDA phones from abroad will support this just fine. I'm sure the 2.0 3G iPhone will support Japanese sites just fine over the WiFi and cellular connections as well since it supports Japanese characters.

HOWEVER!!! If you are roaming over an international plan, your home country service provider may filter out some Japanese text and turn them into ASCII garbage! This happens to me for SMS messages over T-Mobile USA, but not for Emails or Web. You'll have to test and see if you're roaming.

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Me?

Cheap - just get any WCDMA 2100 phone and bring it over. You can either rent a SIM from softbank, or just roam on your home country's number (if you don't talk much and simply browse the net and text message - eg. t-Mobile USA allows me to text all day long on their 400 SMS plan w/o extra surcharges in Japan; otherwise it's $1.99/min to call on T-Mo USA). Softbank SIM rental is cheaper.

2) Just sign up for a plan and phone there. It's honestly the better way to go if you can get setup for one, and the prices are decent and the phones come with far more features than anything we've got.

iPhone - web, SMS, email, chat, music, photo, AGPS navi, and a few apps like games.

Typical High-End Japanese phone - web, SMS, MMS, email, chat, music, photo (5MP+ vs. much poorer iPhone's), video, GPS/AGPS navi with full 3D walking view of the city (vs. iPhone's 2D Google Maps only), 1-Seg TV with recording, higher resolution screens (800x480 and up), credit card & train swipe & go (Edy, suica, etc), waterproof (some models), full Japanese mobile website support with digital code scanning (those little square boxes of random looking black and white squares you'll see just about everywhere - they're little URL links so to speak), .... and if you're up for Willcom's latest mobile killer, full!!! Windows Vista running on the little phone. (Yep, the Japanese have managed to shrink the computer down to the size of a big cell phone....)

Thus, honestly, iPhone is a neat toy, but I'd honestly get a regular Japanese phone, or if business features are desired, a Windows PDA or Willcom Windows vista phone.

You can unlock an iPhone. Google "Dev-Team."

1Seg and Suica phones are totally not important. Just get a Suica card like most people and ignore 1Seg like everyone else. 1Seg doesn't even work half the time anyway.