I notice that the new iPod Nanos have a camera (video and still) - but the Touch doesn't. Is this to prevent people from "down buying" a Touch instead of the iPhone? It might be - I've heard plenty of people say that they would love to have a Touch with a dedicated 3G data plan (like many of the Netbooks do) but no phone features. Such a device would be a natural for a camera, but that would eat right into the market for the iPhone.

I wonder what Apple is going to do about this self inflicted problem?

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