Soon the iPod touch will go the way of the dodo and then Apple is completely down the tubes.
I doubt it. As much as I love my 5.5G and 6G Classic iPods, if us music people abandoned Apple they wouldn't feel much of a dent. iTunes store sells DRM-free music, that slice of pie would still be there if we went.
They're into watches and teasing with TV services now (heh, and I say this as someone who loves their Pebble smart watch, too).