The price drop was expected simply due to the drop in cost of flash which has been dramatic. What is bothersome though is that Apple decided not to fill the high end with anything. That is no high capacity Touch or a version with new hardware features especially BluTooth and GPS. Both of these would add value that people would be willing to pay for.
64GB flash doesn't exist in a portable device yet. In this refresh Apple wanted to make the device smaller and cheaper. They'll bump up capacity next time around.
I think you're out of touch with most of society. For starters, Apple wasn't making political moves. Second, if Apple wants to see how their product sales are effected by the economy, they can look at their own sales numbers. It's ridiculous to complain that the company isn't making the product you want because they must be influenced by the other political party.Frankly the following is political: I'm begining to wonder if Apple is being run by a bunch of Democrates whom are actually starting to believe their parties crap about the economy. First the economy isn't that bad and some sectors are booming. Second there will always be people with money in any economy to ignore them is just short sighted especially for Apple as they market primarly to the wealthy segment of the economy. Third even if you are not wealthy a Touch offers a way to stay connected at low cost and in a portable manner. This is one reason why I think students, especially college students, love the Touch devices so much - for a little bit of cash it does a lot and is handy in ways a laptop isn't. It is almost like Apple is affraid to aggressively market Touch based devices.
This release of Touch just boggles my mind. It is not like Apple hasn't been aware of where the functionality desires are. My only conclusion, especially considering the capacity gap, is that they have something that simply wasn't ready for immediate shipment. This we get a couple of low end units for now.
There's a difference between knowing what people would like and making business decisions and compromises about what will be updated. Apple doesn't have an infinite R&D center. They have technology constraints, time limits, and strategic budget concerns to counter their wish-list of new features. You're asking for Apple to spend R&D on a new device that crams in twice the memory, a new antenna, and god knows what else, and your justification is that there are still wealthy people out there who will buy it? I think Apple uses a better system of determining demand at various price points, and as consumers who don't make our own devices, we have the same choice as always - buy it or don't. We've still got better options than we had last year, or two years ago, or 10 years ago.