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I've had the 5th generation iPod touch for almost 2 years, its really a non-issue.

But I see that you want to make it an issue, so don't mind me.
 
I find it funny how people are complaining about the camera yet they're still going to buy it :D
 
I don't have a problem with a mild protrusion if it makes it into the final design. I actually think it's cool that the phone is so thin that the camera has to peek out just a hair.
 
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