I think it's the real thing.
Some considerations:
1)There is not a single familiar object in the picture (the connector might be a new one made just for this new kind of iPod) so we can't state how big it really is. We can just take as a fact that the screen proportions are 16:10.
2)Chinese characters might be written that way because the guy who wrote it was not chinese, yes, but as far as i know, there aren't only chinese people in china. Might have been an engineer from the U.S. sent by apple to guide/instruct/watch over local workers.
3)The pattern visualized on the screen has not to conform to any particular standard used for either tvs or monitor testing. Apple is free to put whatever it wants in its iPod to test the capabilities of the screen.
4)I believe the "test" screen pattern is stored in the firmware and not streamed through the cable. The purpose of the cable might just be to provide power to the iPod when the picture was taken.
5)I agree that it looks more like a "B" than an "8".
6)I assume the Apple logo is on the back, just like every other iPod of every kind and generation.
7)It looks like an iPod, so if this is real, the product name will likely be still "iPod". And i don't know how this might be so surprising.
The product in question (if real) fits even more it's name than the previous generations. The iPod is clearly shaping up to become the one and only platform for your "digital lifestyle on the go". A new interface that looks and acts like Front Row seems a good guess to me.