Disappointed by Apple's lack of a real update to the iPod Nano last fall? New leaked photos indicate that Apple might still be working on an iPod Nano with a camera — clip and all.
For the uninformed, although the iPod Nano looks like its running iOS, it's not. It's another OS made to mimic the look of iOS.
Seen from an alternate view, you can kind of make out that the +/- buttons are a little larger on this prototype. Perhaps Apple's going to use the + button as a shutter button as it already allows on the iPhone.
With iPod sales on the decline, overshadowed by immensely strong iPhone sales, Apple needs to make the standalone music players look attractive again. A camera with filters (like the fifth-gen camera) could help.
Other rumors suggest that Apple might add a speaker in the iPod Nano.
What would you like more? A camera or a speaker? I think I'd have to go with a camera, but then again, I'm just crazy for anything that takes pictures.