I think there will definitely be a size upgrade to the iPod Touch line in September, but I don't see them going hard drive based. I think they'll definitely stick with the flash memory; and I really don't see them adding too many features to the iPod Touch, or to the other iPods. The iPhone 3G barely got any new features, so there's not a lot to add to the iPod Touch. But they're currently giving away iPod Touches to education customers with a computer purchase—I think they're trying to thin the supply for an upgrade in September.
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