I think the demand for an iPod classic is severely diminshed.
The only way I could see anybody having one is if you don't have an unlimited data and are in the car all the time, or if you fly out of the country a lot.
iTunes Match, airplay, and home sharing have taken a big bite out of the iPod classic.
the iPod classic limits you to 160 gigs. My music collection is like 300 gigs. I can access all 300 gigs using the "remote" app and stream it to either my Bose Sounddock 10 in my bedroom or my AppleTV in the living room using either my phone or my 8 gig iPod touch.
I have iTunes Match which gives me 25,000 songs, which is probably enough to fill a 160 gig iPod classic and it costs $25 a year.
If I were in the car all the time and didn't have unlimited data than I guess I would have use for an iPod classic, or if I was frequently flying out of the country and didn't want to pay for the airplanes wifi but for most uses I think home sharing, iTunes Match, and airplay have eliminated the need for the iPod classic which is why you don't even really see them on display at Apple stores anymore.
God you are SO wrong, as is everyone else on this thread, as far as I'm concerned.
The IPOD classic is simply not big enough. It doesn't need any fancy crap and should definitely not have to rely upon fast internet connection. It could be the ultimate walkman if it was just made bigger! 500+ gig would be a good start. I estimate my music, audiobooks, podcasts, and lectures at a total of roughly 650 gig, and this does not take into consideration that every week I am discovering new albums I like and lectures I want to listen to. Just today I had to delete two lectures and some podcasts (short stories by Chekhov, and some updates from Mumia) to make room for 5 albums I wanted. And just yesterday I wanted to listen to an album that was on the ipod other than the one I had with me. I am so sick of having to think about and manage two ipod classics and having to delete things every time I want to add something new. Ridiculous. I do not want to have to have strong internet connection just to listen to music, and I certainly am not thinking about apps while listening either. There is a big lack in this area and Apple needs to address it. I am not the only one I know in need of a much bigger ipod classic.
Ipads, Iphones, and Macbooks can be used for playing around with apps and everything else. Keep the Ipod classic for MUSIC and its lovers. It is the ultimate walkman, provided you upgrade it with some decent headphones (though the standard ones are good for audiobooks in silent environments, but nothing else). I don't want spotify or any other streaming; it simply doesn't have the range, and I don't want to have to rely upon internet connections to listen to music!! It is and should be a separate thing!! Just like I don't want the internet to read books, so I don't want the fricken internet just to listen to an album. I couldn't live without the internet and it helps me daily in discovering new bands, but listening to music should not have to rely upon it. I just want to have my record and cd collection on a brilliant, mobile device, and while the Ipod classic is the VERY best thing on the market for this, it is just too small and needs to be updated so I can enjoy all my music on the go, and not have to delete albums each time I want to add a new one.