
confused: This is the third time I'm typing this, don't know why it got rejected 2x, sorry if ends up with 3 similar posts)
First, What you (Grant1210) plan to use a SD card reader for?
I think it's unlikely.
- Physically: No room; or at least the space inside the slim iPod touch can be better used to continue to improve battery, camera, screen, or possibly 3Gdata/GPS/antennae (rumored today). Adding a reader isn't just the size of a card, it's all the frames and electronics needed to make it work. I'd hope they improve the 0.7 MP camera rather than put in a SD reader.

- Strategically: Apple has good deals with Flash RAM manufacturers; I dont see Apple relinquish that advantage and go to SD cards. Also, allowing music/movies/books/apps to be transferred via SD card would open up a can of worms in terms of copyright issues. And Apple's media partners would not like that at all.
- Functionally: Apple's a minimalist, less is more. I don't see how carrying extra SD cards around fits in that. In terms of media transfer, you can already transfer all you media amongst your computer/iPhone/iPod/iPad via iTunes. And with iOS5/iCloud coming soon, you'll have all your media accessible from all your devices. I think Apple would like you to use the wireless iCloud over an SD card.
Most people would use an SD card with a camera. Apple sells a reader for the current iPad. I could see them putting in a reader for a high end iPad HD (rumored). I doubt they'd put one into the iPod touch.
Cheers! (hope this goes thru this time. if not, I give up.

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(Oh and I don't know any more than everyone else here who reads rumors.

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