You know the more I think about it the more I think that Apple could actually improve the iPod touch a lot and dominate. Ive had both iPhones the original and the 3g and I've truly become tired of the contracts and AT&T pricing structure as well as service. There are still tons of people who are interested in the iPhone but under contract with other companies and or just want to avoid a new contract to AT&T. So that makes me say why not improve the iPod touch to be nearly a duplicate of the iPhone. Include the microphone, include the camera and just leave out the cellphone. Make it virtually identical in everyway except for the cellphone hardware. They were close to doing this already minus the mic, the camera and a slightly smaller form factor. Quit wasting time and just make it the same minus the cell hardware. Highlight a new iPod touch that is virtually identical but functions as a Skype phone and maybe the new features we might see like the camera, video recording, etc.