what? there releasing a new product named itouch at WWDC?
No, people are just shortening "iPod Touch" to "iTouch".
There will not be any revisions to the iPod Touch beyond possibly a 64 GB version. They will not be dropping the 8GB version at WWDC either. Since the BTS promo is giving them away, they're going to be around at least until September, when the traditional iPod refresh happens. This is where we will see iPod Touch G2.
However, the pricepoints of Apple's mobile devices will be shaken up. The new iPhone will take the current price of $399. Then, Apple will release the remaining stock of 2.5G iPhones for $299. BUT this is the iPod Touch's current starting price. The 8GB iPod touch will drop to $199 (coincidentally the same current price as an iPod Nano [and iPod Mini at the time], which the BTS promo has given away for years).
3G iPhone: 8 GB $399, 16 GB $499, (32 GB $599?)
2.5G iPhone: 8 GB $299***, 16 GB $399
iPod Touch: 8 GB $199, 16 GB $299, 32 GB $399, ($499 64 GB?)
iPod Nano: 4GB $124, 8 GB $149
--edit--
***This could be the basis of the '200 dollar iPhone' rumors