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.