I've seen the photos and it looks pretty bad.
Well, the
photo looked pretty bad. I don't think it's easy to make a judgement about the new iPod nano itself given the photo was a photo of a screen showing a manipulated photo that itself was unprocessed, with the colour washed out at all steps along the way.
It's not actually hard to imagine it looking fine (not beautiful, but only the original iPod nano ever looked particularly beautiful) if you imagine one of the things on the desk in front of you.
However, I wouldn't put anything into Apple requesting that the photos be taken down. After all, how do we really know that Apple made a request. For all we know, the website put the images up for a little while, then took them down and claimed that Apple made them.
Apple asked several websites to take down the photos, including Engadget. It's not impossible the photos are fake, but it is highly unlikely.
I think those trying to wish the device away are:
1. On a hiding to nothing. Those are the new nanos.
2. Getting upset about nothing. You've seen the new designs in the worst possible light (quite literally!) It's a new shape, actually quite pleasing to the eye, and with clear functional improvements over the older design.
(As for those speculating they're an entirely new line of iPods, uh-huh. Yeah, I always put the name of unrelated products in filenames of projects I'm doing.)
Now, who's to say that the nano won't get a widescreen display. You could easily retain the current dimensions and add a widescreen. Just move the scroll wheel closer to the bottom, then put a widescreen on it's side. When you watch a movie, you hold the nano sideways. When you use it for music, hold it longways.
Been speculated upon, and, well, that's not what Apple's going to do.
It's time to stop getting upset over something few have ever seen in solid, tangible, form. I think it'll look fine in practice, and as always it'll sell by the bucketload.