i dont think its necessarily re-using an old design. When you get to the size of the nano you are limited by the features you want to put in rather than the design 'statement'
also- does it look like the screen is flat an the body is curved??
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Yeah, screen looks flat.
As for going back to the old formfactor, I think it has more to due with how easy the chrome back scratches, as well as to the usability of the device. Going widescreen with the current formfactor would result in a very wide nano, or something that isn't much smaller than the classic.
Plus I hear complaints all the time of how hard it is to keep hold of the current nano when running, cycling etc.
WHY, oh tell me WHY do we need ANOTHER ipod revision? Isn't the current line up perfectly fine (except prices and capacity)?
What about the Macbook Pro!? That's what needs all the attention!
Because Apple already saturated the market, and the only way to make money off the iPod line is continual innovation.