You do know that you basically just described the iPod Touch? Your list is not what the iPod Classic needs based on it's primary use, Music playback.
The Classic would no longer be like a Classic iPod if these changes were implemented. These changes would completely change the design of the iPod which would be against the Classic branding. It's supposed to be similar to the iPods before it, not like the iPods and iPhones of the current generation. People buy the Classic mostly for music only and it's large hard drive. If it was switched to flash storage, it would either not store as much or would cost nearly double the current price.
A more modest refresh would be a refreshed UI, maybe a higher resolution "Retina" display (640*480), a larger hard drive and most likely the new Lightning connector in place of the older Dock connector.
Although, it's most likely that once they implement 128 GB or 256 GB flash storage on the iPod Touch, the Classic will be retired. It's quite out of place in the current line up compared to the Nano, Shuffle and Touch.