Apple learned marketing segmentation from MBA school. There is NO LED on the ipod so all the indoor photos you take suck. They deliberately left out the LED light from the ipod. Makes you want to buy the iphone for better quality pics. The segmentation lesson is to define the product so you don't cannibalize the high end sales.
The gen 4 ipod is the same form factor as the earlier ipods where the outside case is curved to fit in your hand nicely. You have to buy an iphone to get light for the camera. The iPod camera is not a 5MP camera like the iPhone. That is how they keep the cost down to ~$200.00. This isn't obvious to the consumer. Even after reading Apple product web pages about the Gen 4 iPod, it isn't exactly clear what the difference is until you buy it. I just want to test my photo apps but I need the light for a better camera. Last thing I need is another smart phone data plan for 2 years. I now have 3 iPods, 4 different android devices, a windows 7 phone on the way and no time to possibly manage apps on all the platforms. And for a phone I use virgin mobile because they have the most reasonable service pricing.
Sucks.... ok going to figure out concurrency for the iphone SDK. Damn those marketing people... extracting more money out of me makes me want to go to Android.