Zazzyo. It depends really on your tastes and what you want from a phone. Let me list down the problems with having a touch phone which may help you in making a decision:
1. Its difficult to type on them without looking at the screen. With a candybar phone you can easily do that once you get used to the keypad. Besides even if you type on them while looking at the screen many ppl don't find it comfortable. I used a Samsung Corby for 8 months. I loved the device except for one thing. Even through the screen was capacitive and i could type very easily, the OS was very slow and it could not keep with the users speed of typing so there was a lag between what you typed with your fingers and what appeared on screen. This is a problem with some Samsung touch phones and some LG phones. Not with Android devices though.
2. If you will use the touch screen to do a lot a texting, it will develop a lot a smudges and you will have constantly keep cleaning it with a cloth.
3. The average touch screen size is roughly 3 inches in most of the phones therefore the size of the phone will be a bit bulky too in most of the cases and if you don't like carrying around bulky phones then it will be a problem for you.
4. They "usually" don't have long battery life if you use them a lot. I said usually, since when I used Samsung Corby it gave me a working time of around 1.5 days even after a lot of use which included music, radio, playing touch games and around 10-15 texts per day etc. So I would say the Samsung phone are an exception.
On the other hand if you are looking for a "iPod Touchesque" device + a regular phone, with a minimal amount of texting then a touch phone would be very much feasible for you. You said your budget limit is around 17,000? I would recommend the following touch phones to you:
1. Apple iPhone 3g (You can get it for a bit higher somwhere like 22k and is the best touch phone available for that price)
2. Sony Ericsson Xperia X8 (Best Cheap Android device available right now - I am not sure if it is available in Pak though)
3. Huwaei IDEOS (Surprisingly a very capable device - although locked to Zong, so you would have to get it unlocked)
4. Samsung Marvel / Monte (Monte doesnt have a Portrait Qwerty Keyboard - Not sure about Marvel)
5. Nokia 5250 (Not good for texting as it doesnt have a portrait qwerty keyboard - but great for music, games and internet browsing with Opera Mini 5)
Another option would be to get an iPod touch (3rd generation runs for like 18k) for everything else and a cheap reliable phone from either Nokia or Samsung for calling and texting.
Hope this helps.