The only question now is: How good the cameras will be? Will we see 5 megapixel cameras? Will we see quality optics and CCDs? Will the iPod kill the point and click and the Flip in one blow?
Interestingly, the camera hole location in the iPod touch indicates that it will be a different camera mechanism than the iPhone 3GS. This could mean those 5 megapixel claims from Digitimes could prove correct.