Jeremy Horwitz, the editor-in-Chief of iLounge, reported changes to forthcoming iPods. 

The anticipated fourth-generation iPod touch will be changing shapes- reverting back to a model "closer to the look of the first-generation iPod touch’s back, only with modifications." The back  has a flat surface, similar to the top of a MacBook Pro, and will have curved edges. If rumor has it, the model won't include the iPhone 4's all glass surface- and will be created with stainless steel or aluminum instead. Additionally, a camera is installed in the rear. However, there is still some question as to whether an LED flash will be next to it, or a second microphone for shooting video, like the iPod nano. Although, Horowitz stated, "We’ve been told to expect a microphone rather than a flash."

Secondly, Apple is putting out a new nano! The touchscreen display is under 2 inches, but is being considered a nano rather than a shuffle.