In an area you don't know and that some taxi drivers have told you isn't that safe, would you take your 7-year-old daughter (you have no one to watch her) with you to that police precinct and show them where it is via the GPS and have it make that noise and see if you and they can get it back?
Or would you wipe its memory and let go of the couple of days of work on there and the texts and voicemails from friends and take your daughter with you to the equally-not-fun-to-go-into-area called the Apple Store to get your old iPhone that had become her iTouch re-activated?
Mitigating factors: 1) Your daughter was somewhat excited when your iPhone was stolen, because it meant "You can't work! Let's play Barbies!" 2) She once said you cared more about your new iPhone than her. 3) You've been feeling burdened by too many possessions lately, coming off a time of being lightweight and mobile and with few things.
Option 3: You forget the phone for the weekend, your daughter's last weekend before starting 3rd grade, and don't post photos or videos during that time and just live.