Thank you for posting the link. It was interesting reading.
I also scrolled to the bottom to read comments and found that most were dissenters, arguing that there is a place for the iPod Touch.
I agree. I use my iPod Touch every day. It is my main go-to-device to check email, quick web search, weather and other apps, etc. I put it in my pocket and walk around the house listening to music and audiobooks.
If Apple creates a 5 or 7 inch device, this wouldn't replace the small footprint of my iPod Touch.
Furthermore, I can't see the neighborhood kids walking up the street to the bus stop, listening through their earbuds with a 7 inch device.
As has been stated many times, an iPod Touch user at 12, may be an iPhone user at 20, along with an iPad, and Macbook purchaser also. It gets customers addicted early in life and comfortable using the entire Apple ecosystem of apps and products.
As far as I can see, even if it doesn't bring in the sales like the iPad does, the iPod Touch is still a win-win for Apple. And I will be ready to purchase a new one in September should it arrive!