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You're mostly right but...64GB of flash memory is considered pathetic? You do realize that 128GB flash drives (i.e., just the memory and a USB controller) run for $360 right now?

That is totally marked up and packaged consumer product, not the price of a bare drive for manufacture in enormous volume. And if the high end touch is a bit more expensive, so what. Premium iPods have been $500 before.
 
That is totally marked up and packaged consumer product, not the price of a bare drive for manufacture in enormous volume. And if the high end touch is a bit more expensive, so what. Premium iPods have been $500 before.

Where would the space be for 4 chips instead of 2?
 
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