New iPod Nano with 1.18" touchscreen? NO

Rumors of a new iPod Nano / Shuffle with touchscreen has just got another shot in the arm with Apple Insider coming up with meaty details. While a 3cmx3cm screen was leaked before, the new rumor claims that the 6th gen iPod Nano is coming with a much smaller form factor (1.18″ touchscreen) and may offer some unique input methods. The claim is also that Apple has managed to retain the 30pin standard iPod dock in the new Nano touschscreen.

A 1.18″ screen looks pretty small and certainly couldn’t fit in a camera on the back. I don’t really see Apple making a Nano with a touchscreen such that a camera isn’t present. Why would they take a step backwards? However if you tell me that this is the new shuffle, I might agree!