From some of the rumors recently I was speculating that Apple might reduce all lines, being that the iPod Shuffle and Nano technology is now so limited compared to the touch and iPhone.
It probably won't happen but I thought of sub-$50 shuffles, sub-$150 nanos, and touch starting at $199.
Honestly, in today's market, a Shuffle is NOT worth more than $49 for 2 BG.
Nanos are nice but very limited, so $149 for their highest GB fits, leaving $199 for a starting touch.
If they upped the hardware and offered 8GB touches for $199 it would probably work well in the market and open up Apple to a lot of money available in the App store. The name of the game is money, so Apple will want to get as many people hooked into APPS, not just TUNES. They are probably going to squeeze the Nanos and Shuffles (non-Apps) down to the kiddie end, entry level side of the product rung. I wouldn't be surprised if the touch takes over the classic iPod, you just get an expensive, bulky touch giving classic sized capability - more Apps to sell.