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I've seen it suggested that the Nexus 7 isn't the Android iPad, it's the Android iPod Touch. This makes sense to me, and it makes sense to me that Apple could be moving in a similar direction with the iPod Touch itself, especially if it can hit those weight goals. This would also seem to open up some space for the iPod nano to gain functionality.

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Alternatively, maybe soon – with the small iPad filling the $249 price gap – Apple will finally kill the iPod Classic and cut prices on the rest of the line. They've been manufacturing the lower quality retina display for the iPod Touch for two years, and costs must be down significantly.

Combine that with falling costs for flash storage, and I could see them going down to $150-$250 for the Touch ($150 for 16GB up to $250 for 64GB), $100/$125 on the Nano, and keeping the Shuffle at $49.

I'm hoping they keep the iPod Classic around, regardless of how well they sell. In my mind, it's the seed of the Apple renaissance.

There really is a dearth of high-capacity PMPs anymore. I still have my Zune 120 in my truck, constantly plugged into the stereo. I sync it over wifi when I want to add new music, and I have my entire music collection available if a certain song unexpectedly pops into my head and I have to listen to it. 64GB is still too small and too expensive to be feasible for carrying around an entire catalog. With the Zune gone, Apple is the only game in town for high quality, high capacity media players (surprisingly, CNet doesn't include it in their "best hard drive mp3 player" list, only the mediocre Archos 5 at $500).

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