I think that iPhone-esque iPods will soon be released. Look for larger capacities, probably 100GB, and a very similar design to the iPhone. We’ll be treated to the same great touchscreen that automatically rotates the interface depending on how we hold it, which will be perfect for watching videos. But we’ll lose the phone functions, and with those we’ll also likely lose the camera and OS X interface. What makes the iPod so great is its simplicity, not its robust set of features, and by merging that notion with the new iPhone hardware Apple will be giving the iPod a serious upgrade.
Link: Gizmodo article