No.
Nano is a FRACTION of the size and used pretty much ONLY for music.
An iPhone, in case you don't know.. is used to mostly CALL people. There's no service charge for an iTouch... it just uses WiFi.
A camera makes perfect sense on an iTouch for people using apps such as Twitter, Facebook, etc. And also just for normal pics. I think in this day and age, any small device that has WiFi and more, should also have a camera.
I know most of what I'm saying is obvious and you probably know it.. I'm just stating the reasons why.
Ffsake, there's no such thing as an iTouch, it's called the iPod Touch.