As it has been rumoured the iPhone 5 shall come equipped with a 4' screen. Inorder to avoid fragmentation of the iOS system it is logical to give the next ipod touch a 4' screen as well. While the older 3.5' models such as the iPod touch 4th gen and iPhone 4s will still receive two major software updates and then be left in the dark since the iPod touch's screen has mimicked both the size and resolution of the iPhone for multiple generations (see retina display), i fail to see why it wouldn't in the next update. A larger screen would allow for more area for internals such as an expanded battery to power an upgraded processor (since the ipod touch has a thinner form factor it also has less room for a larger battery. Expanded battery capacity will open the doors for an A5 processor in the iPod Touch). Likewise the iPhone 5 will receive a larger battery to power its upgraded A6 processor. as of 29th of November 2011 this is just an educated guess Thoughts/Rebuttals/Questions?