The word is that the iPod Touch didn't have auto focus because it was too thin. A better battery (thicker) might give it the room the auto focus mechanism needs.
Still with the WiFi Galaxy Players 4" and 5" and another (??4.2 or 3.6??) which includes GPS and all cost less than $200 there is a lot of pressure on Apple. The problem with the Galaxy's is 800 pixel width compared to about 950 pixel width on the iPod. Since the screen on the iPod is smaller, the image is sharper.
I have said this before. I hope Samsung spins off the Note into something like a Note Touch just leaving out the cellular part and maybe cutting some specs to get to $250. That is a good price for Kings and monkeys.