We still don't know for sure why Apple pulled the camera from the last iPod Touch update. Jobs has claimed it's a combination of keeping the price low and the way the Touch is now positioned as a game system, but plenty of people don't believe that. Adding a (admittedly low-end) camera didn't seem to impact the Nano's price and the leading portable game platform, the Nintendo DSi, packs two cameras.<p>I think it's all about not undercutting the iPhone. The iPhone has 4 things the iPod Touch doesn't have: voice calling, 3G networking, GPS, and a camera. The iPad is adding GPS and some models will have 3G networking. If it had a camera, it'd have all the features of the iPhone except voice (and pocket size).