I would be satisfied if battery life and RAM are increased.
I can live with the cameras. More megapixels does not automagically mean better pictures. In this application, it's arugable. But a point-and-shoot? Questionable.
True but a 0.7 mega pixel camera is horrid which would cancel out a great sensor. With devices having 3 or 5 MP, the itouch might as well receive that upgrade along with a better sensor.
Battery is better almost every year and increase in RAM is highly likely especially if an A5 processor is included in the 5g.