When I heard the rumors, I was skeptical. Then I saw the product, and I was impressed. That said, I still hold that the current Nano should really replace the Shuffle as the budget player, and bring back the 5th Nano, but add a still camera, wifi access to iTunes and Calendar sync and leave it be. There are uses for the touch screen but there are also uses for the wheel as well. Going completely touch in the ipod line (IMO) would be a mistake.