It'd be nice if they went ahead and introduced a $500 128 gig Touch. I would buy the damn thing and I'm sure quite a few other people would too. I remember back when the first color iPods came out they were VERY expensive. For crying out loud, my 30 gig iPod Photo cost around $375 and that was WITH a student discount.
Would you buy it if it were a $600 128 gig Touch?
Going from 8GB to 32GB (24GB) bumps the price $100.
Going from 32GB to 64GB (32GB) bumps the price $100.
What makes you think going from 64GB to 128GB (64GB) would only bump the price $100.