"What to expect from third generation of iPod touch?"
I'm a product/furniture designer, and it usually takes two prototypes before you get to more of a "final" product. "3rd time's a charm", they say. There is always something I see that can be improved with my own designs, even though I thought they were nearly perfect before building the latest version.
So I expect polish. Apple has been creeping up on "perfect", but there is plenty of room for polish. The UI should always have both portrait and landscape modes. Even the home screen(s) should change when you tilt the Touch. If nothing else, the icons can spin 90 degrees in place. We're getting landscape modes for email, stocks, and notes. IMO the maps app, clock, calendar, iTunes and the App store should also get a landscape mode. We're getting stereo bluetooth (which should have been "ON" in the first place with 2nd gen!). We're getting search, both local (to each app) and system-wide. The screen could be better (AMOLED), and the whole device could be lighter (see the cowon S9).
For additional hardware, there are two possibilties. One is to add things to the Touch itself. The other is to make add-ons that use the dock or bluetooth to interface with the Touch. Given Apple's reference to the latter, I'll bet we see both GPS and Camera devices that you can "add-on" for an additional fee. Keep your Touch in your pocket, but have the iCamera send photos to it via bluetooth. Park the iGPS on your car's dash, and have it send coordinates via bluetooth to your Touch while you navigate from the back seat. Everyone who insists the Touch will never get camera or GPS are half right. Everyone who want this hardware with their Touch gets it, externally, for the usual Apple (high) price.
That's my theory and I'm sticking to it.
4D 😉