The iPhone and iPod Touch are closely related, and not because the devices look alike. They both share the same operating system and the same core features: FaceTime video conferencing, Siri support, iCloud and iMessage, for example.
Although these devices have the same operating system and software features, there are differences between the iPod Touch and the iPhone.
The main difference is the size of the screens. The iPod Touch uses the same 4-inch screen that has been in use since the iPhone 5. Other models go a step further in size, resolution (retina display) and color gamut, resulting in larger, brighter and more beautiful images.
The camera is an important aspect of any mobile device these days. The iPhone camera is without a doubt the best option.