Steve Jobs does customer development

The iPod Touch has always been good for games. But it wasn't always positioned as a game player. Or a pocket computer. Now it is.

Perhaps they thought it might take off that way but weren't sure and the cost of the 3D horsepower compared to lesser capabilities was low enough that it made sense to include it for the added flexibility in being able to position the device whereever the market told them it should go?

If they put a 3G chipset in there it'd be the iPhone without a microphone. What's the point of that?

Exactly what I was wanting, too. And, I suspect, what they'll eventually roll out. But I would have happily paid the old price if it had a camera added to it. I imagine many others would, too.