So first in the 3.0 software betas there have been 4 new iPhone/iPod touch devices named (excluding iProd):


iPod 2,2
iPod 3,1
iPhone 2,1
iPhone 3,1


Unless apple have started working on an iPhone and iPod Touch to release in 2010 (very unlikely) 2 of them must have big changes, like a bigger screen).

Second, Apple ordered 10 inch touch screens, which none of there products out at the moment use:
The latest news out of Taiwan is from Reuters, which says it has confirmed an Apple order for 10-inch (diagonal) touchscreens, a size typically used for netbooks. The news agency cited an unnamed source in Taiwan, but added that the individual didn't know the type of device for which the screens are intended or who might manufacture it. Other reports have suggested Quanta Computer would make the as-yet-unannounced product.

Apple has repeatedly declined to comment on the rumors, saying the company doesn't address speculation.
http://www.newsfactor.com/story.xhtml?story_id=0010002320KA

Apple will take third-quarter delivery of newly developed 10-inch touchscreens from Taiwan, a source said on Wednesday, amid talk the U.S. firm is developing a touchscreen PC. Taiwan touchscreen specialist Wintek already makes small screens for Apple iPhones, and has received orders for the larger ones that are roughly the same size as those used in mini PCs, said the source close to the Taiwan firm. He asked not to be identified because he was not authorized to talk to the media.

http://www.9to5mac.com/10-inch-screen-mac-laptop

Thirdly, last week Amazon announced a larger kindle in a rush just a month after announcing a there 2nd gen kindle. The new kindle will have a bigger screen. Have they found out something about what Apple is making and are trying to compete?

Sounds cool but the only problem i would have is that it would take the whole ipod concept away from it leaving just another internet tablet ! And also wouldnt really fancy the price on or if realease date.
But overall i think it would be a huge success, and would hope to see it in the near future :)

but then it won't be an ipod... would it?

but then it won't be an ipod... would it?

Exactely what i was getting at !!

hasnt this been a rumor for like 10 years now? more likely to happen now tho.

As long as rich white people continue to fuel Apple's market for expensive touch screen handhelds, Apple will have no other choice but to take the next step and integrate it into a tablet or macbook of some kind

I propose we take bets on how expensive it will be... I'm predicting 5 grand

I will buy a touchscreen PC only when it reaches the power of my $2000 HP HDX 18