To shed some light on the speculation...
People don't seem to understand that this iTunes phone is just a Motorola phone with iTunes capability. It's not an iPhone, it's not an iPod. It's a phone that plays music. That's not to say that there may not be mention or even a brief announcement of such a device...it's in the realm of possibility, but the iTunes phone is Motorola's baby, not Steve Jobs', and we've seen what happens to cool devices that are not the brainchild of Jobs (Newton anyone???) That being said...
With the rumor that Samsung is supplying 4GB flash chips to Apple, I don't think all of them are going to iPod minis. We all know that accessing a DVD's worth of material off an iPod would suck a battery dry in an hour or two. But if that information is pulled from a 4 GB flash cache...then we're talking decent battery life...so put those complaints of low battery life to rest.
In conjunction with Toshiba's manufacture of the 80GB 1.8" drives, I believe we have a solid rumor on our hands. Steve Jobs is not the kind of person to book the Moscone Center and invite the press to an event for somebody else's product (read: Moto iPhone), he's going to take the spotlight for himself. Enter the iPod AV (iPod video, iPod movie, vPod) whatever you wanna call it. Video is the next logical step in the progression of the iPod. Notice the name of the product....iPOD...not iPlayer, not iMusic, iPod...the center of your portable digital life.
Now imagine this, an iPod with a full face LCD screen (dare I go as far as OLED...I wish) with a "virtual" click wheel. I'm sure Apple can provide some sort of engineering prowess to the idea of a click wheel beneath an LCD screen if not simply a touch sensitive LCD ala the PocketPC or Palm device. But allowing for a full face iPod screen would provide ample room to watch DVD's on flights, during times of boredom, bus trips, plane trips, car rides, not to mention the cool factor. Look at Apple's product design and knack for minimalist asthetic. There will be no buttons on this iPod, I'm going to venture a guess that the next iPod (if not this, then one in the future) will be a full faced LCD screen with touch capability, with progression into a possibility of data entry ala Palm/Newton for all you Newton maniacs.
Just my two cents.