I honestly dont see how they could get away with having the 4G base model just a 3G 16GB. They really should add the camera. I understand that they cant get a 4G for $199 but im pretty sure they can manage the cameras. I am positive that the $199 is their top selling model and if its just a 3G with absolutely no update other than storage, they will lose aton of customers. Especially around Christmas.
I personally think that all the 3rd generations will be removed. Also, on the assumption that they do have a different look (like the iphone