It's diminutive size may be the preferred form for many folks still. And the price point isn't disruptive to typical disposable income patterns. In this sense it won't be going away simply because there exists a device w/ a larger screen. Don't throw the baby out with the bathwater just yet
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Now that iPad is live, is there going to be any real demand left for the Touch? I've always felt that the iPhone's added features, connectivity and functions kept the Touch's popularity down; now that iPad brings a humongous touchscreen to the table, is the Touch line doomed to for a final trip to the waste heap?
I played with the iPad at the local Apple Store yesterday, and I have to admit that I was impressed by the device. Nicely responsive and very much a Touch only jumbo sized. But I felt that was actually an extremely good thing, considering the sorts of tasks that we ask our iPod Touches to do. The added real estate is VERY nice to have and use, even though the virtual keyboard still sucks and the fingerprint smudges are ten times more evident than on my little Touch.
But I also had the feeling that had the iPad been available when I bought my Touch, I NEVER would've even bothered looking at the smaller Apple device at all. I know the Touch's form factor gives it an edge in portability, but the iPad's overall functionality due to its size--even if it means reduced battery longevity--seems to me to just crush any reason for the Touch to continue to exist in Apple's lineup.

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