All I really want is that nice back camera they have on the iPhone 4. Beautiful stills and nice HD video! The new form factor, a4 processor, retina display, front facing camera - any of those additions are just icing (and sprinkles!) on the cake I am sailvating to buy in September.
The iPod touch is my favorite apple product. All the cool stuff of the iPhone without any of the phone specific problems. 🙂
That would be pretty cool
I can see in my mind's eye a combo of mini-iPad and iPhone 4 design.
A radius-beveled unibody aluminum back, with a plastic segment for antenna reception, and not the now-seen-as-problematic stainless band. but probably not 3G connectivity (which is iPhone domain, in the small form-factor. iPad has the large form-factor differentiation from iPhone.)
Main camera and flash, which another rumor claims as 5 megapixels. Secondary front-facing VGA FaceTime camera.
internal Microphone and speaker. Unless it might depend on Apple's mic-on-headphone-controls to do audio input and output... but speaker and mic onboard the device would be good to have.
Bluetooth connectivity (ear-piece, keyboard, audio output, or keyboard input, Nike shoe sensor)
It might not get GPS or Compass (but it would be cool if it did), but likely to get gyro+accelerometer system, and A4 chipset, and retina screen from iPhone 4.
That would set the stage for iPad 2, with at least one camera (possibly laptop-like iSight in the bezel, FaceTime ready), more Ram and processor speed upgrade, higher res screen (close to retina-screen, but maybe not quite so pixel-dense on a screen that large, and gyro upgrade. (and hopefully WiFi reception re-work. Apple can stand to work on their radio antenna designs, and implementations.)
With iPhone 4 on one end, and iPad on the other... iPod touch, (or iPad Nano, perhaps) could essentially combine the best of both. iPad like features, with iPhone-like pocket-size and camera functions. (also making it a competitor to Flip and other pocket cameras... plus all the other functionality of an iOS device)