It means we're all nerds that get way too excited about absolutely nothing. It's all good though!
This has been debated over and over again on this forum, and others. It's time someone made it a sticky.
To get a steer on where the iPod Touch is heading, you only need to look at the recently announced changes to the iPhone 3G - ie. there were hardly any that would make the jump to the iPod Touch. Most of the changes were phone-related features (3G, GPS and a design change to incorporate them).
As people have reasoned out on other message threads, here's the possible directions for the Touch:
Bluetooth: possible, but unlikely.
GPS - possible, but unlikely. iPhone uses a combination of 3G and wi-fi to locate your position with the GPS chipset, so it probably isn't going to make it to the iPod Touch, as it would rely entirely on wi-fi to be of any significant use without dramatically increasing the size of the device.
Design/case change - possible, to bring it in line with the iPhone manufacturing process and standardise shared components. People have complained about how easy it is to scratch the back of the Touch, and many don't like the ugly wi-fi antenna. A case redesign is entirely likely.
Memory upgrade - possible. But as someone has mentioned already, the 32GB memory in the iPod touch is 2 x 16GB flash drives, not 1 x 32GB drive. To go up to 64GB, you would need to put 4 x 16GB drives inside the case. Again, when teamed up with a case re-design to match the iPhone, this might not be such a crazy idea. However, Flash memory is expensive at the moment, and it would significantly increase the price of a Touch if the memory jumped up. A memory increase is probably not going to happen until well into next year. I'd love to be wrong though.
Price drop: this is the most likely route for the Touch in the short-term, to help boost sales. The 8GB Touch will more than likely vanish from the range (again, as we've all said: why buy an 8GP Touch, when you can get an 8GB iPhone for less - even though you'll pay subscription charges for the phone service in the long run?)
Additionally, Apple traditionally offer two capacity sizes in any given model in the range (which makes sense from a marketing perspective), whereas the Touch currently has three capacities in the range.
We've all read that stock of the Touch is being run down at the moment, in line for a re-fresh at some point in the next few months, so we can probably expect some kind of news on the Touch, but don't expect anything over-dramatic in terms of technology.
Lastly, when Apple make a significant announcement about a product (design change, introduction of a new product etc.) they normally do it a major event, like WWDC, MacWorld etc. or they announce a special Apple event. There are no events scheduled, other than the launch of iPhone 3G on 11 July. Price drops, capacity changes and the like usually happen when the store goes down for a few hours and the web community spread the word of any new changes. However, we could see an Apple event announced soon to launch the App Store, which would be an ideal time to announce a new Touch.
I reckon any immediate changes to the Touch will mostly be cosmetic - ie. software (2.0 is on the way), a price-drop, or possibly a memory increase.
I'm betting on a price-drop any time between 11 July and the end of October.
has really put themselves in a bind here by bending over for AT&T. Mark my words, iPod Touch sales will plummet unless there is a price cut to keep in in line with the subsidized iPhone price. Even if 