I imagine that Apple would never bring back an iPod in the future with the clicky wheel because it could be perceived as 'backwards looking' and cuts against their desired image as 'innovators' who bring out the 'next thing'. Bit sad, because my memory of the later generations of the Nano is that it was an excellent device.

It's probably true that most people just get their music and podcasts through streaming services on their phones though, so perhaps they don't care to keep a niche product around.