"Micro" sounds 'not as good' as "nano", because it isn't. Next would be iPod pico.
...or I guess since they skipped micro, they might also skip pico and go to femto, but I think skipping micro was more for marketing/aesthetic reasons.
Thanks for the correction... Yeah I don't think we'll be seeing any iDevices or iPods with micro, pico, femto, atto, zepto, yocto, etc. This is marketing, not particle physics. Not sure what else you call a "very small iPod" other than "nano".
That being said, I revise my earlier predictions... I still think the square case is either fake or, if for iPod, for a new item between the shuffle & nano in terms of size (though maybe greater than nano in price). If the square case is for iPod, I think everyone saying iPod Watch have a great guess!
That Dick Tracy image just nailed it... The dream is finally here!!! *(provided you are in a wifi zone).
I really don't think they would physically grow the shuffle. I don't think the square is the shuffle. If anything, the shuffle will evolve until it is a pill that can be swallowed.. Or inserted into the ear... "shuffle" to me implies "mostly featureless".
The square thing might be called iPod Watch, iPhone nano [EDIT: though that might risk cheapening the iPhone name],... Or "iPod FaceTime". Think about it... iPod=music, Face=wifi video phone, aka FaceTime, and Time=watch/watch form factor.
That thing is gonna need some Apple stereo Bluetooth headphones though. Not having a cord from my wrist to my ears. Don't need the mic on the headphones though... When FaceTiming your mouth would be plenty close to your wrist.
EDIT: And just to clarify, in the context of an iPod FaceTime/iPod Watch/whatever, i still say, as i did earlier, that the shuffle and nano will remain essentially as they are, perhaps with some upgrades/revisions. I'm seeing that square and thinking it replaces neither nano nor shuffle. It's either fake or an entirely new animal. Perhaps it's the "very big new product" (see MR page 2), though why Apple would need new support staff to handle an ipod wifi-videophone watch, i've no idea. Maybe just to handle all the calls from people not understanding how to set up FaceTime (syncing your email address to the iPod in iTunes; and maybe also syncing a list of accepted wifi networks and associated passwords from your touch, iPhone, iPad, laptop, etc. in iTunes) or wondering why they can't get calls "anywhere" (even though the salesperson at the Apple Store told them FaceTime only works in wifi).
Again, don't take this post too seriously... I'm just having fun speculating.
YET ANOTHER EDIT: Maybe iPod FaceTime will be sold with standard earbuds--basically a larger touch version of the 2nd gen shuffle that you clip-on or throw in your pocket--and/or bundled with an "Apple Watch Kit" (also sold separately) containing the wrist band and stereo bluetooth earbuds. This would enable Apple to lower the entry price-point, so that maybe the device wouldn't completely break the bank for, say, kids and teens... they could just start with the clip-on/pocketwatch version of iPod FaceTime. Don't worry, soon enough most will upgrade and get the wrist watch kit w/ stereo bluetooth earbuds. *cha-ching* for Apple.