I just hope that they can try get this to market at the right price with enough features, possibly an OLED screen and good quality earphones so it can compete with the Touch and Sony's new X Series.
However, they ought to release it in Europe sooner rather than later because Sony's new X Series is an incredibly tempting proposition for many people.
I do not expect this to have a HD screen mind, but then again, surely 720p on such a small screen would not look fantastic? As there would be ALOT of pixels crammed into such a small space. I'm not too sure on that actually, maybe someone else can define what a high resolution screen for such a small device is?
Personally I'd be interested in buying it if it has:
Touchscreen
<=== For sure
HD Output (possibly via HDMI)
<=== No way, as uncompressed file size would be too large and HDMI socket on portable device unlikley.
Lossless support (FLAC etc...)
<=== Nope, WMA lossless only
A high resolution screen
<=== For sure
A good User Interface
<=== For sure
Great sound quality
<=== For sure
A good pair of bundled headphones / earphones
<=== For sure
Equalizer
<=== For sure
Wifi
<=== For sure
Bluetooth
<=== Maybe
Web Browser
<=== Maybe
Ability to download songs through the web browser
<=== For sure, through Zune Marketplace
Wireless synching
<=== For sure
Ability to send and receive files between two devices and with no time limit etc.
<=== Nope
AND, if its possible, Windows Live Messenger and access to other Windows Live applications.
<=== Maybe
Oh and some other things which I don't know of yet
Just get the details out before the Sony X Series is released and / if theres a new iPod Touch.