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 ), then would they even want the third generation on the shelf as they would look pitiful by comparison. If they keep the same design, then they can sit together. I hope for the redesign myself as the back camera doesn't seem likely without it.