If you look at the small, flashbased MP3-player market, there are already many available with 16 GB! Take the Creative Zen which is hardly bigger than the nano: You can get a 16GB-version zen for the same price (or less) as a 8 GB nano, 199$. There is even a 32 GB version of the zen! So what is Apple waiting for? Especially since they added video to the nano a 8 GB maximum seems too tiny. I don´t think that a 16 GB version would eat into the sales of the classic. It seems they are waiting for September because that is their product-renewal cycle. But I find that dumb since the market has been clearly ready for a 16 GB nano for a while now!