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I can guarantee that we won't see a new iPod touch this year. The two-year life cycle for the iPod touch is a great idea. There is not such a huge pressure on the iPod touch as on the iPhone. Also, the iPod touch still owns great value for its small price.
 
They are not updating the Touch. You will not see a new Touch (other than colors) until fall 2014.

If they had eliminated the iPhone 4S, I think you would have had a better shot at an updated Touch. As it is, it looks like Apple has no issues with using the A5 (iPhone 4S). Also, the A5 should work up to (and including) IOS 8.

I agree with this, I no longer think a new iPod touch is arriving this year, with the iPad 2, iPhone 4S, iPad mini all having the A5 processor, iOS 8 could very well be fully supported on the A5 devices, which would mean less of an attempt to axe the current iPod touch for a new model. iOS 8 might have a baseline requirement of 512MB RAM, and focus on minimal features.
 
I predict the A6 and still the same size(small to me) screen.

I will buy it IF it is an A7 or A8 and a 5 inch screen.
 
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