What if it's not the Nano and not the Shuffle, but an entirely new iPod? They would then keep the the Nano and the Shuffle, maybe discontinue the Classic, and just add a new one to the line... It's a huge change from the current Nano, why not keep the Nano then?
No. There are pricing structures, so the iPods slip into categories. This thing would be something over a shuffle but a sub-nano. What's that then? $99-$119? What a slim margin. NO.
There is a possibility Apple keeps the shuffle and lets it slink down, this would be a nano-killer in the $79-$149 line, and then the iPT will take over everything $149-up.
Apple's iPT is the preferred hardware for Apple to sell--APPS, MUSIC, MOVIES all make money for Apple on sale and they are endless. What the company wants is to have something sold which leads to selling more product and service. iPods began that with music, but now with movies and apps it would be a waste to make the iPT exclusive to the wealthiest. It has to lower down into cheaper area while the nano becomes a toy for starters.