Mmm,
You sound like you need an
iPod Touch. But the problem with iPhone/iPod Touch is that the "GPS" relies on triangulating Wi-Fi signals. If you go geocaching, there is absolutely no way you can get multiple Wi-Fi signals in the woods/mountains.
Also, having geocached once, I know you need to run programs like ArcGIS or some other mapping program in coordination with a GPS. Those programs only run on the Windows Mobile Platform.
The iPhone/iPod Touch is mainly used for multimedia (Pictures, videos, and games)... Your best bet is an Axim x51(v), a HP PDA, or another iPaq.