Interesting that the landing page describes colours, screen resolution, even the CPU architecture and speed - but not the storage capacity. I have >100GB of music on on old iPod Classic and capacity is the most important factor for me.
16 - 128GB in price ranges of $199 to $399
This is especially true for the large mobile gaming market, where it's a lot more likely that a parent will buy an iTouch for $199 for their kids to play with vs getting them an iPhone (which wasn't realistic before the refresh due to hardware limitations)
It will be interesting if this refresh will be a one-off or if the iTouch will be kept at parity with the iPhone, surely there should be less concerns about the iTouch cannibalizing the iPhone sales than there were years back when the iPhone was not as ubiquitous.
Steaming services are relatively useless out here unless you've somehow cached everything you want to listen to. Mountainous terrain with spotty coverage, long distances along service deadspots, etc. But, I'm likely not in the age group that "gets" the obsession with streaming. I'd rather have my music on a device that's with me.