Now, with some finesse, Apple could in fact deliver all 3 of those devices next year:
a) Add bluetooth to the iPod classic, letting it export music to other Apple devices.
b) Allow the iPhone to be remote controlled, via bluetooth, by other Apple devices ... and allow other devices to route IP traffic through the iPhone (bluetooth DUN tethering, and/or bluetooth PAN).
c) Release the Newton 2 as an iPod-Touch with 3rd party app capability, more bluetooth support (DUN, SPP, HDI, and PAN), and the full suite of iPhone apps (with the bluetooth remote dialer/handset capabilities I outlined above, in place of the direct phone capability). Or, if the Newton 2 is going to be a bigger-than-iPhone device, still do this, but also expand the capabilities iPod-Touch to fill the same role. So, basically the iPod Touch becomes a "Newton 2 lite" (in terms of size, but not in terms of software). You can choose to have a PDA (expanded iPod Touch) or a note-pad side tablet (same capabilities in a larger screen size).
Also, you should note that my scenario only requires a very modest expansion to each product. We know the Touch already has a bluetooth radio built in. So does the iPhone. The iPhone doesn't have to add 3rd party apps in this picture (the iPod Touch does, unless it gets replaced by a new device that has that capability: the Newton 2). The only hardware change, I think, is adding bluetooth to the Classic.
It fits the position that Apple is taking with the iPhone as a non-expandable platform. It fits all of the missing pieces I've talked about in past messages. The only people who are really "out in left field" in this scenario are the people who expected the iPhone to be a Newton 2.