Even though I'm a bit pessimistic on how world-changing this thing will be, I don't know if I would go that far. I think a bigger screen iPod Touch would certainly have appeal- even if ALL it was was a bigger screen. For example, I'm a tall guy, and in my big hands the iPhone and iPod Touch is just too small. I have the room to use one just like many use them now, even if that one was 1.5X or so bigger... maybe even 2X bigger.
And let's face it, if you own an iPod Touch for a lot of video watching, and game playing, it is an awfully small screen for those kinds of applications. So, if I was shopping for an iPod Touch- or maybe an iPhone- right about now, I'd probably stand by and see if a bigger thing called a Tablet would be a better fit. I am intrigued by the mid-sized rumor... the one with a screen around 7".
Also, if they build in cell phone capabilities, but leave it open to any cell phone carrier, they still honor their exclusive arrangement with AT&T, while opening up the iPhone experience to other carriers all over the world. That would be pretty hot from a marketing perspective.
If anything, I would love to see wimax built in, and a best-in-class VOIP application from Apple. That wimax piece is definitely possible, but who knows about the software.