Why do they even make them with that material if it scratches so easily? They should make them with anodized aluminum. I remember my first iPod was the 2nd gen nano and that thing was impossibly to scratch. If it ever got scratches i could just rub it and it would disappear.
These were real. Apple dropped the idea because it might compete with the iPhone and also the iPod nano's sales were lagging so they decided to put it into the nano instead
If you open up a the 3rd gen touch it has a space exactly where the camera was supposed to be (these aren't on the 2nd nor 1st touch)
How does it compete with the iPhone?
The iPhone's main advantages over the touch is a camera, phone features (texting and calling), and internet everywhere and also GPS
But the iPod touch paired with a Mifi allows internet everywhere and some phone features (limited) using Skype and you can just use email. So taking the camera to the touch well you know...