i think Apple could release a 128 GB SSD ipod touch. But still not enough capacity for the crazy itunes collectors.
I know a lot of people will be annoyed if they totally kill off the ipod classic because they want to haul around their massive itunes collection.
what i've proposed for a while is apple make a headless ipod 'brick' (approximately 5" x 3" x 2") that could plug into your car stereo and wirelessly stream music to an ipod touch, iphone or ipad. You could 500 GB and 1TB capacities. Think mini time capusle for IOS ecosphere.
I emailed steve jobs and he said he'll get right on it!
I think they could put 128GB in the Nano, if they really, really wanted to.
A small and big iPad pair (iPod touch should be a mini iPad, and named as such) could be 64 or 128 GB pretty easily, if they wanted.
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Your idea of a headless storage device is interesting, though. I would add that it should be a multimedia device, and have two modes. One mode as a headless media storage drive, to be played by other devices, in-car, in-home, connected to another iOS device with a screen, or whatever.
It should also be a streaming device. When it gets power, it should act like an AirPort Express, either joining a network, or creating an ad-hoc network, WiFi and/or Bluetooth discoverable, and allowing two-way connection to other devices.
That would allow an iOS device, or a computer with iTunes to see the device, and both control/configure it with input to the device, and read/stream data from it, as output from the device.
With the device active between an iOS or computer, and a physical output from the device to a car, home, or other media... audio or audio/video, it would actually act similarly to a new form of AirTunes and AppleTV, giving a computer, iOS device, or the device's internal storage, to display on the external video screen, and play audio through the external speakers.
It could also act as a tethering WiFi-based network node, as a router extension, or even a 3G/4G-to-WiFi bridge, like some cell phones do. Even if the specified device doesn't have it's own SIM and Cellular transceiver on-board, it could co-opt and tether to a device that does, like a data-plan iPhone 4 or newer, an iPad 3G or newer, or even a USB cellular transceiver, or a computer so enabled.
It would basically just need physical ports. Audio out (combo analog or digital optical), Video out (miniDP that can adapt to DVI or HDMI, including audio, and an analog video port, perhaps S-Video or mini-VGA), USB out, and 30-Pin dock input (Power, initial configuration, and software upgrades from a full computer, other inputs and outputs).
It would be cool if a 30-pin to 30-pin would connect the device to another iOS device to balance battery power between the two, and share the device's data with the screen-equipped iOS device, or act like a media-dock between an iOS device, and an external A/V component.
The device could be built like a solid-state hard drive, with a multi-media bridge interface. A screenless box with lots of ports sort of a form-factor. kind of like an external drive enclosure.
I like the idea. A versatile media transit hub, even without a screen. It would work as an audio/video car kit, a replacement for AppleTV, AirPort Express, and various mobile wifi/Cellular internet kits.