Does iOS 5 reveal a new iPod touch? (Updated)

It's obvious that a new Touch will come out with iOS 5 but the photos of this next device are obviously fake. they just resized the photo so that it looked like it has a bigger screen

I think we all know a new model is coming. I suspect Apple will announce the new iPhone as the flagship device of their September music event this time around, but they always update their iPods to get ready for the Christmas season. They probably felt they needed to include the iPhone in this year's event just because iPods are decreasing in relevance with the number of smartphones out there. I never really liked how the new iPhone always came out 3 months before the new iPod touch. Anytime a new iPhone would come out, it leaves last year's iPod touch looking like a reject device.

I see the iPod touch decreasing in relevance though as the iPhone is probably going to come out on all 4 major carriers, leaving the only remaining incentive for the touch being the lack of a contract with a data plan. I think Apple could help its relevance by having a model with built in 3G and prepaid data options like they do with the iPad, but their profit margins are so high on the iPhone that I'm really not sure they would ever do that.

I think a model refresh is inevitable even if Apple doesn't have a strong competitor in this space. Apple isn't going to let another company eat their lunch (Apple's) and get ahead of the game.

There are a couple of reasons I think this is inevitable.

#1. The graphics engine and processor are behind in terms of what the iPhone 5 will be capable of. You know the iPhone 5 is going to carry the A5 processor and the graphics capability of the iPad 2. Leaving the iPod Touch behind doesn't make much sense.

#2. Apple knows if they dangle shiny new toys current owners will buy. Even if it's a minor upgrade like a better camera and a few little odds and ends.. Minor updates like that can entice not only current owners to buy, but get the hold outs as well that have been waiting for a better camera.

#3. I know this may sound unlikely, but I think there's a strong possibility we'll see a Touch with a 3G radio much like the iPad does. I know that sounds like a long shot because of the iPhone, but I don't think this should be ruled out either. Apple knows many Touch owners get their phones on the prepaid market and this is one way of enticing more prepaid phone users into buying their products. If Apple threw a 3G radio into the next Touch (even if that was the only change) I know I'd buy it in a heart beat!

Have I lost it, or is that image squished a little?

To be honest, I'm skeptical that there will be one. There's no competitor to the iPod touch so there's no pressure to get into a specs war when the existing hardware is more than competent to handle iOS 5 as it is. A better camera would be a nice bone to throw out there, and maybe a simple refresh to update that rather than a bona fide new model may yet happen. Otherwise, there's really no point to puttering with it right now.