Decaflon

I'm not sure WHAT they would do other than up the capacity... adding anything the iPhone has hardware wise would kill some sales for the iPhone.

With something like the iPod Touch most updates would probably be in terms of software.

I can't really think of any hardware-related complaints, actually.

Exactly, everything I would like on my iPod Touch (next/previous track buttons, camera) I can get by buying an iPhone. Putting them on the iPod would confuse product identity.

I wonder though... since AT&T is allowing users to turn their EDGE iPhones into iPods by killing the phone feature when you upgrade to the 3G, if sales of disabled iPhones will ramp up on ebay...

I think I would wait because at the very least you are sure to get a price drop and if not a stroage boost. With the new 3G iPhones they almost have to come out with some new iPod Touches or reduce the pricing. Of course September is a long way away or right around the corner depending on how you look at it.

I could see a redesign to match the Case change on the 3G... and a price adjustment. ($500 for a top of the line iPod is INSANE)

Yeh, I can see the storage increase / cost decrease, cause that fits the typical M.O. for Apple. If they go that route, I wouldn't be surprised to see one of the iPods dropped (either the shuffle or the classic) and prices adjusted accordingly.

However, I think there's also a case for keeping the Touch priced artificially high to encourage the purchase of the "more reasonably priced" iPhone.

Somewhere down the road I think we'll see a spin-off of the iPhone to it's own thing...and then a merger / buyout of RIM. Then iPod will be free to innovate without worry of impact to iPhone.

On a side note for us current iPod Touch owners... what's with the insane amount of complaints on other websites about the $10 charge for 2.0?

I've seen comments like "Not everyone can afford this upgrade" and "I cannot believe how insanely priced 2.0 is"... I know the economy is slumpy for people but is $10 that hard to come by? I have that much in my wallet right now, why is that an insane price?

Yeah minor stuff like that always made me chuckle, if you don't want to pay switch to an iPhone and have higher monthly costs or just don't upgrade at all and save your $10.