The iPod Is Dead. Long Live the iPod

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You could talk on it as if it were an iPhone, and the mic would put in double duty for simple audio recordings like meetings, lectures, and voice memos.

How About a Camera?

The touch should really have a camera, too. And is there any reason why that camera can't be better than the one in the iPhone? The latest iPhone 3GS sports a 3-megapixel camera sensor, while the latest phones from Nokia (NOK) have an 8-megapixel sensor. Apple could split the difference and give the touch a 5- or 6-megapixel sensor, giving it the ability to take really gorgeous pictures.

And if the touch has a camera, then it should support video. All that added memory leaves plenty of room for clips, and the Wi-Fi connection makes it easy to send them directly to YouTube (GOOG) and other video-sharing sites. And while Apple has resisted adding memory-card slots to its handhelds in the past, now that the Mac has a slot for SD memory cards, is there any reason the iPod touch (and for that matter a future model of the iPhone) can't have a slot for Mini-SD cards for added storage capacity?

While we're wish-listing, why should the iPhone be the only device in Apple's lineup that can help you get from one place to another? Why not add a GPS chipset, and let the iPod touch become a full-fledged personal navigation device? The touch's limited navigation features currently only work when Wi-Fi is present. This is fine when you're in a city, but no help when you're on the road. With excellent personal navigation devices from Garmin (GRMN) and TomTom (TOM2.AS) selling for as low as $120—more than $100 below the entry-level touch—why consider navigation a premium, iPhone-only feature?

However Apple answers that question, what's clear is that traditional versions of the device are a thing of the past—and future iterations will have a long and vibrant future.

Hesseldahl is a reporter for BusinessWeek.com.

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