Well, because I am, first and foremost, a dork, I thought that I'd read a little too much into the red shuffle anouncement.
1.) While $10 for a nano doesn't cut too much into the bottom line (is probably more than offset by making the product more desirable, good publicity, and tax credits), $10 off of $79 or $89 would be significant, and a $5 donation would be a bit small (but doable).
2.)Hmmmm, could everything be shifted down (like a shuffle that fits into the space between atoms?) and the nano gets lobbed in two lengthwise and becomes the new shuffle, hence the red version. A smaller nano (I think pico has been mentioned) would be a better competitor, especially priced at under $100. OK, so maybe its not too likely, but if the shuffle becomes more nanoesque (i.e. a screen), then that could better explain the red.
3.)While this IS certainly NOT going to happen, what about something the size of a nano's screen with the entire screen being a touch wheel. I suppose it would take up too much processing power and cost too much for a shuffle (plus, your finger would obscure the screen), but if they are coming out with a big all-screen ipod, than how about a tiny, postage stamp one (speaking of which, how about a postage stamp that plays music. We've already got those musical greating cards).
4.) Shuffle earphones at some point? Anyone?
5.) Shuffle tooth. Plays through the bone.
6.) A colony of shuffle bacteria that work in tandem (although a cold could be really loud).
7.) Beaming music directly to your ears from a far away device.
7.b.) How about beaming from the future (hey, we could finally get the beatles on itunes)? The Past?
and now that my minature nano/shuffle seems logical by comparison I will hit you with the ultimate/uber/convergence/singularity of all ipod/apple/computer/electronic/technological/human endevors...
IPOD SOCKS !!! "They shuffle while you shuffle around the floor" (plus, they now come in red)
