The iPhone 5 is being delayed to September, and I think it's going to be announced during the same event as the iPods.
Considering the rumours about the cheaper, prepaid iPhone, i think the iPod touch is going to see minor improvements (or no improvements at all), with a price tag of $199. A 3G (+GPS?) version with phone capabilities is being launched starting from $299 off-contract for 8GB. Meanwhile, the iPhone 5 is going to be launched as Apple's new flagship phone, with A5, 4", etc., with the same price tag of $199 on 2yr contract
Everything of this makes perfect sense to me. What do you think?