On August 7th, one of three things will most likely happen (I hope)...
MOST LIKELY
Apple will release a 6G iPod that has the same form factor as the current iPod. The screen will be brighter and the hard drive will be bigger. The interface will be updated (but not identical to what was shown on this forum) and have nicer graphics/ GUI. And, if Apple is in a giving mood, they will probably release a firmware update for current 5 and 5.5G owners. This will be there "Christmas Update". It will sell for the current prices.
BEST CASE (not very likely this soon)
Apple will release a multi-touch iPhone minus the phone. It will Have many of the PDA features just like the iPhone, but will not have any communication features (including email & Safari). Possibly Bluetooth, but no WIFI until around WWDC in 2008. Pricepoint.... I'm estimating $349 (40Gb) and $449 (100Gb). Also, remember that a big expense with phones is all the Qualcomm royalties for network communications lisensing - without that, apple would have extra cash to work with.
WORST CASE (I pray to God not)
Apple will release a 6G iPod that has the same form factor as the current iPod. The screen will be brighter and the hard drive will be bigger. The interface will be updated (but not identical to what was shown on this forum) and have nicer graphics/ GUI. APPLE WILL NOT RELEASE A FIRMWARE UPDATE. The new iPod will be dubbed "The iPod that's almost as good as the best iPod" and a lot of people (including me) will be pissed. The multi-touch iPod won't arrive until around WWDC 2008.