TUAW: Apple may discontinue the iPod shufle and classic
That would be very stupid. Does Apple not realize that the Classic is the only MP3 player that has more than 64GB of storage space? If the Classic is replaced by a 128GB or 160GB iPod Touch, I can see that. Given current SSD prices, Apple will charge a fairly high price (say, $499 or $599) for that. Most people still balk at $299 for a 32GB iTouch and $399 for a 64GB iTouch, me included.
As for the Shuffle, Apple had better allow a $69 Nano (4-8GB) to happen given the current competition.
Unfortunately, Apple must be betting on this whole cloud thing. As for alternatives to the 160GB Classic, where are they?