This is a wild idea but hear me out. Current thinking is that apple will bring its retina display to the next revision of the ipod touch. This means double the pixels and new line of apps to support this. Thats fine and dandy. The retina display runs twice the number of pixels on the same size screen. But what happens when you half the size of the screen, say of the size of an ipod nano, would that mean the retina display could display the "old" apps that were written for the older hardware in their native resolution just half the size of say the 3GS. Run some basic iOS4 functions and bob's your mother's brother. new consolidated ipod line: Stop the classic Turn the new nano into a shrunken iTouch with the retina on half size New iTouch with retina running double that and double capacity upwards shuffle->nano->itouch->iphone bish bash bosh.