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i think a widescreen multi-touch ipod would be killer though
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I think it'll be awhile until we see this.
essentially that would mean Apple would need to re-create the entire iPod. Most people who are asking for the iPhone but without Internet features or phone features or what not are forgetting the extra costs of those components in negligble--it's the iPod portion (read OS X and the graphics subsystem) that's the most expensive. Maybe January of next year but I wouldn't expect it until Flash memory drops in price, too.