[PaperMacWriter]

Wait.... its the SAME camera thats in the 3GS? How do we know they're not getting ready for China iPhones, or another few countries? Or the iProd? Or just to keep up with demand? I'm not staking too much in the camera rumor, although it would be nice.
Oh, and to those skeptical that it would be a threat to the Flip camcorders, they would be. It may not be HD, or the best SD camera, but most people always have they're iPod. The same cant be said for pocket-camcorders.

[newuser1980]

if they are sealed battery and tighed with itune, no thanks I will rather use my nokia n95

[tony_d]

Adding the camera to the iPod Touch is a no–brainer. But I don't see it on the Nano. Part of the fun is being able to instantly upload the photos or video to web or email them. Can't be done on the Nano.

[Rolleijoe]

I was asking about this feature just last week, and now here it is being backed by someone who (presumably) knows.
This has been the one thing keeping me from buying an iPod Touch thus far. Not interested in an iPhone until I can keep the same T-Mobile I've had for a decade.
Add the camera function without taking anything away, and I'm sold.
Not that hip on video (use Sony HD for vids), but with all the features of a 32Gb iPod Touch intact + built in camera convenience (I still shoot FILM in my cameras) for quick snaps, and you've got a certified winner!