Is September upgrade time for the iPod Touch?
It's more likely than you think.
Fans of the iPod Touch who felt left out due to last week's launch of the iPhone 3G S, take heart: You've got a new device on the way. In the BlueTool initialization script in the iPhone 3.0 firmware there are mentions of a new iPod Touch called "iPod3,1." Given that the current generation is referred to as "iPod2,1," this indicates Apple has a new version in the works.
It's too soon to say what the new iPod Touch will look like or feature, but rumors point to a camera that takes video as being a likely addition. Other rumors indicate a larger screen, new wireless features, a digital compass, and GPS.
While fans would love to see more iPhone-like functionality in the new device, Apple has to make sure it doesn't give too much away: make the iPod too much like the iPhone and it takes away much of the reason to buy an iPhone.
Apple's last upgrade to the Touch line came last September, thus it would seem reasonable to assume that the next one would be this coming September. Being that it's an Apple product you can be sure more info will slowly come out in the months to come.