As much as I would like this kind of device, I really don't think we will see it happen. The main reason being Apples contract with AT&T. This is a long term contract and you're not dealing with a bunch of dummies. I bet there are all kinds of clauses in there that will keep Apple from selling an iPhone like device without the phone part. I bet the new iPod Touch will be very similar in look and feel to the iPhone BUT will only include the iPod like functions. No WiFI, no Safari, no email, etc. It will have the iPod and Photo functions only. I'm imagining the price around $349 and $399 depending upon disk size. Then the new Nano Video will replace the existing 5.5G iPod in the price line. I would not be surprised if they keep selling the existing Nano and Shuffle as they are. Just my opinion.