Right. The original AppleInsider rumor on this called this device another product category besides Mac, iPod, and iPhone.If they were to release a larger ipodlike device, theres no way it would be marketed as an ipod.
Hopefully there's some good software to justify a higher price point, like iLife, iWork, Preview, eBook reader, and split-screen.+ it would be way too expensive.
The reason why iPod touch sells at the current price is because the production of it's parts goes on a very large scale serving 2 products... and yes, I'm talking about the touchscreen.A larger touch would cost as much as the 1st gen iphone prototype..
So, there goes any larger touchscreen product...
We can also see up to double the capacity of the iPod touch.