I am now feeling a bit permissive for a change (I am usually accused, not least by my DCs of being very strict and I often do seem to be!)
My DS got an IPod Touch for his 14th birthday in May this year and managed to lose it by September!!!! Aaaarrrh!!!! I will not tell you, dear MNetters how but he is a burk and many many people have enjoyed reminding him of this since then. He has asked for another one for Xmas and has PROMISED me he has learnt his lesson (and inasmuch as he could have had something else for Xmas I hope he has). He actually really enjoyed the one he had - games, music etc. and useful apps).
Now my 11 yr old DD wants one too and I have actually decided that this might be OK. It is rather a large present, more than they usually get but I am only getting the 8kb one (Comet seemed to have them quite cheap or at Tescos if you buy one you get £15 grocery voucher so as I shop there sometimes that effectively knocks £15 off) and it is a joint present between me and my XH. I am not getting any ITunes vouchers etc with it as they can get that with any money they get. (OK you hear me justifying the expense!)
However, my DD is actually much more careful with her things and is unlikely to lose it. I think that it is far less risk than them having a very expensive phone - i.e. they won't take them to school (my DS was fine about that with his last one) and won't take them anywhere if there is a risk they might get broken/lost. I know there is always a risk but we will minimise it.
I am interested to hear about the disabling of the Internet access. As someone said it is only where there is wireless and I have disabled the wireless in my house anyway as I like to know where my kids are when they are on the net so I can keep an eye on them. However, I plan to hand them over to my BIL a few days before Xmas so he can charge them up (yes - I could do it, I am not feeble! But the DCs will track me down!) and I will ask him to disable the Internet access. Bit harsh for DS maybe but he can go on the Internet at home. And yes - I guess one of the main things about it is the Internet access but my experience with DSs other one is that there is LOADS of other things you can do so they won't miss it.
However, to go back to the OPs post - I actually think YANBU (hypocritically) because it is up to you what you decide for your child - I don't think that I would have bought one for a 9 yr old as I have had to think long and hard about my 11 yr old (and she will be 12 in April) AND I truly relate to your difficulties in getting XP to be consistent with you (mind you if I ever get the money from my XP for these gadgets it will be a miracle!)