I disagree. What I think might show up is, ahem, an iPod Touch Maxi with a 4" or 5" screen. Which would be identical to an iPod Touch in every way except for b

I disagree. What I think might show up is, ahem, an iPod Touch Maxi with a 4" or 5" screen. Which would be identical to an iPod Touch in every way except for being scaled up 30% (including in pixel size) -- like the Nintendo DSi XL. Target market for this device would be people like me -- i.e. over 45s with presbyopia/fat finger, who want a physically slightly larger device with the same UI and apps as the iPod Touch. A secondary market would be ebooks: the iPhone/iTouch screen is just too small to be comfortable, but a larger screen at the same (retina display resolution) with larger UI elements but scaled text (to display more of it for reading) would be fine. Scaling up the compact iOS interface (iPhone/iTouch) doesn't require redesigning apps in the same way that scaling down the iPad UI would; you can use a small app on a larger screen, it's going in the other direction that's painful. I suspect the BOM for a larger iTouch would be insignificantly costlier than a regular iTouch, so this would permit them to hit the $300 price point without cutting their margins significantly.