Rumor Time: iPod Nano - Touch?

We're two days away from Apple's "Music" event (scheduled for Wednesday September 1st) and that can only mean: more rumors!

We've already glossed over an iPod Touch sporting a Retina Display and dual cameras (for Facetime without an iPhone), 99-cent movie/tv show rentals on iTunes, a more cloud-centric iTunes, and now all but confirmed, a new touchscreen iPod Nano.

Last week Engadget had reported the emergence of a new iPod Nano or iPod Shuffle that was only a 1.7-inch touchscreen. The case above from Alibaba.com suggests that this mysterious micro version of the Touch may be real.

PMB feels it could be a new touchscreen Shuffle as it's about due for a refresh and the tiny, no button interface of the current Shuffle was less than a hit. Also, trading the Nano's video camera (which at the $150 price range) that allows Apple to compete with the Flip camcorder for a 1.7-inch touchscreen would be a step backwards in our opinion.

Alibaba via Engadget