If you think about it, the "kiosk" rumour and the "WiFi" rumour are mutually incompatible.You know... I thought about that, and it seems like a REALLY good idea. Or what about a mall or music store... you hear a new song, really like it, go over to the kiosk, hook it up, or even use WiFi securely, and, as Steve would say, BOOM!. Not a bad idea. I may have to run a mockup through Photoshop and see what I come out with.
If the thing has WiFi built in then you would connect to the Apple iTunes store from the device as usual, so why bother with kiosks? The possibility that the new iPods *won't* have WiFi is also enhanced by the fact that Steve Jobs specifically and very recently (I think in his last public appearance), has said that people don't want to do that and would rather buy the music on their PC's and keep it in one place (iTunes).
If on the other hand the "radio" rumour is a garbled account of the new "Kleer" (http://www.kleer.com) radio technology, which is short range but higher quality and throughput, then the kiosks make excellent sense again. It also makes sense to throw in some digital HD radio stations on the kiosks.
The Kleer technology married with a touch-screen iPod, and some kiosks in StarBucks and BestBuy, is so compelling that I sure hope they *are* doing this. It's a sure-fire opportunity for Microsoft if Apple fails to implement it first.