As expected...
This is not much of a rumor. iPods are great business and Apple acted like one is in the works, but no iPod yet, despite major dates.
Some of the less plastics-inclined geeks here probably don't realize it, but touchscreen technology shouldn't translate into an impossible problem nobody can solve and we all have to be skeptical about. No, rather, we don't know jack and there are people that do, and besides, Apple wouldn't work on 1) an impossible product or 2) a product so faulted people would complain as they did with the Nano screens. Touchscreens have a huge cool factor, and getting in there with a big change is the way to stay ahead.
However, staying ahead is taking some developmental problems. OK. And? What's the rumors? Will Apple abandon touch screen for its next iPod? The longer they keep it secret the longer I'll have to hear this kind of redundant news along with more and more people wanting the iPod to be their next every-inch-of-tech-I-could-think-of piece of junk. Next Newton?

Next iPhone?

What those guys want is an iPod that is no longer a music player. People thinking too hard about how impossible touchscreen is are considering an iPod that can't stay ahead of the competition for the next years to come.
Hopefully this delay is one that is only hard to fix, and not both hard to fix AND a major problem like the screen responds only half the time or touchscreen is impossible to work with or hd doesn't fit. If they're trying to figure out what to do to keep the iPod from responding to the inside of your pocket while you walk and play music, fine. If they screwed up,

!
But Q4? Darn it.