Apple may be planning to add a camera to the next generation iPod nano, according to Apple.pro.
The site has posted a photo showing the back cover of an iPod nano with a hole in the top corner for a camera lens. This positioning of the lens would be blocked by the rear clip in the current nano. In order to accommodate the camera Apple would have to make the clip more narrow.
Apple.pro has a fairly good track record with rumors and correctly revealed the tiny touchscreen used for the iPod nano months before its release.
Word!
If the camera and the actual photo is of decent quality then it doesn't have to be a 4" screen on the device for those random on the go photos.. It obly needs to look decent on the conputer and after being printed.. :)