
So it looks like this whole “iPod Touch with Camera” thing is coming to fruition. While the first case we saw was a little wonky, this makes more sense. Take a look at the back of your iPod touch – there’s a Wi-Fi antenna on the left side so the only place they could stuff a camera would be in the center, next to the antenna. I’m not sure what else is up in that spot, but the camera can’t take that much space.
UPDATE – Now there’s a freaking Nano case with a hole in it!

In short: your iPod Touch will soon take video and pictures. This will destroy the casual video recording market. Sucks to be Flip.
Austin, TX
Seattle, WA
San Diego, CA
Menlo Park, CA
San Francisco, CA
Berlin, Germany