Bumped into a car at red light- situation went downhill from there. What should I have done differently? (or what would you have done)

So this just happened to me. I was at a red light, and my GPS fell off the windshield. As I was trying to catch it, I released the brake without noticing and bumped slightly in the car in front of me. The car was in pretty shitty condition to be honest (broken light, etc.).

It was a very minor bump, but I figured I wouldn't be a douche and be a nice and do things properly and apologize. I followed the guy in a street to the left, where he stopped and he and the passenger got out of his car.

I'm not familiar with the city, so turns out we were in a pretty shitty neighborhood at this point, and it's dark out. 2 big black guys get out, and start telling me how I fucked up their rear, that I should give them $100 for the damage. I started by telling them we could exchange insurance info etc., the guy said it wouldn't work for him and he needs cash. At this point I also notice their car has no license plate.

I only have 15 euros in my wallet (I'm not from the US, and usually I have 0 cash on me), I tried giving them that (they didn't know what euros were apparently) but they wouldn't take it.

They tell me that I should give them my phone- I tell them I don't own one, which is true. They see my iPod touch on the dashboard and ask for that.

I'm a pretty big guy, but I have no clue if these 2 guys have a gun/knife etc. at hand, and I'm sitting in my car with the window down (seeing the neighborhood, I figured it was best not to get out). I tried to negotiate and reason with them a bit but I wasn't thinking clearly at this point so I don't think I was very convincing.

I ended up giving them my iPod, as I didn't see any better way to get out of it.

So now I'm really fucking upset at myself- both for losing a $200 iPod (it was a year old, but still- I used it daily and it was very useful to me), and for not reacting better to the situation.

What should I have done differently? What would you guys have done?

PS: Got home and changed all my passwords (mail, facebook, etc) as there's a lot of personal stuff on that iPod touch, and activated the remote wipe- as soon as they try to connect it to a wifi, it'll get wiped (they'll have access to the locally stored documents in the meantime). I don't think it's worth reporting this to the police, I mean I have no way to find the guys. I could have traced their position if they connected the iPod to internet as I had that enabled, but I figured it was better to wipe out given all the data I had on it.

And sorry if this is not extremely coherent, I'm still super mad at myself for being so fucking dumb.