I received the following response from Init after emailing them about their ipod touch 3G cases that have camera holes in them: "The case comes with a camera hole since we had received the information about a possible release of an ipod touch with camera. The new ipod touch has been released, but it does not come with a camera. You can still use the case, but let me appologize for the misunderstand." Just furthur proof that there was supposed to be a camera and from the teardown and these cases, everyone knows where it was supposed to be. And there's no way a decent still camera was ever going to fit in that spot, so it was probably supposed to be the nano camera.