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But clearly the iPod Touch is capable of much better still pictures since it is able to take HD quality pictures. As far as I can tell, the only thing stopping it from taking semi-decent still shots is the current firmware.
As for thin... the iPhone looks plenty thin to me, and it has a pretty nice camera plus all the cell phone doohickeys and 3G thingamabobs inside of it. An unlocked iPhone goes for $600-800 (about $200 or so with a cell phone contract)--so it's understandable why Apple would want to keep the iPhone "special". So, gotta wait until the iPhone gets a 37.6gigapixel camera with 3D imaging and a built in espresso machine before the iPod gets something with at least 1megapixel.
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