Trusted sources are saying that Apple are currently planning to launch a large form iPod Touch, and one source has actually held the device.
Here’s what you’re looking at according to the rumor:
Two models: 16 GB and 32 GB
3″ touchscreen OLED display with a 10,000:1 contrast ratio (est)
Onboard music purchase support via Amazon
Integrated FM radio
S-Master digital amplifier and digital noise canceling solution
Dedicated YouTube interface