Should I get an iPhone for Israel?

I am moving from the US to Israel for a while, and need a way to call both places from there. Last time I had a cell phone that called both, but this time I was thinking an iPhone might work. I figure since there's Internet, Skype can work for international calls, and a sim card can work for within Israel. I've heard that is complicated though, because I'd need to get it "unlocked". So am I better off getting an iPod touch to use for Skype, and getting a separate phone for use there? Or is Internet there also really expensive if the phone is from here? Basically, I need the cheapest way to use Skype from Israel from a mobile device. And if it can be used for phone calls there, that's an added bonus. Thanks!