you would find that Apple does tend to update their iPod lineup between late August and early October. Knowing Apple, I would not expect any significant price cuts, but rather storage upgrades. If any price cuts are to be made, the Touch and the Classic lines will probably get them. With the 8GB iPod Touch model starting at $299, and the 16GB model at $100 more, the new iPhone is a strong alternative with its lower handset cost. Course the iPhone has other considerations to take note of as well (phone plans).
I think that it is a safe bet that the majority of the iPod line will receive larger flash drives/hard drives (supposing that the iPod Classic is not discontinued altogether). There have been rumors of iPod Nano and Touch upgrades, but I wouldn't bet on those just yet.
Expect to see a line refresh this fall.