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To make a long story short, Apple wants to give the nano a larger screen, more along the lines of the one found in the iPhone and iPod touch (but not a touchscreen).
Apple really only has one option if it wants to increase the nano’s screen size, and that’s by making the whole thing a little bigger. No, not hideously large or anything, but along the lines of the flash-based Zune or the old school iPod mini.
Apple usually intros new iPods in early September, but there’s no indication exactly when it’ll intro the new nano.
iPod nano 4G: a Zune-alike? [iLounge]


why would apple go back to an model to introduce a new one? that sounds strange, hmmm machochip, hmmmm….
what the current gen3 looks like)
(http://www.apple.com/support/ipodnano/)
Posted by mario Hernandez | July 31, 2008