I don't think the iPod touch will be retired, (At least not for now) The iPod touch is being promoted right now as a camera and most fun device for those without an iPhone. The iPad mini doesn't have the camera flash that iPod touch has, and it also is lacking the colors, I think that as time goes on, iPod touch will gain a new capacity, 128GB, and the iPod Classic will be retired, While iPod touch and iPad mini will have the same release schedule, in which both have the same type of internals, which are behind the iPad and iPhone perspectively.