Will the huge success of Apple’s iPhone and iPod Touch line it makes you wonder what might be next for the “iPhones Little Brother”. Silicon Valley Insider thinks there is enough evidence of the iPod Touch to be updated with some new (Hardware Based) features. Some of these changes include…

“- More storage for the same price. The 16-gig unit should drop to $299; the 32-gig unit to $399. (An 8-gig iPhone will cost $199 after carrier subsidy; a 16-gig iPhone will cost $299.)
- A camera. The iPhone’s camera is a novelty, but it’s a useful one, and we’d like to see it on the touch, too. Video recording also makes sense, especially with a 32-gig drive.
- Mic and speakers. People are going to use this as a wi-fi Internet phone. So it’d be helpful if Apple included a microphone. Speakers would be nice so a small group could listen to tunes or calls.
- A bigger version. Increasing the screen size to five or seven inches would make movie-watching and Web-browsing much better. Load it up with enough features and capabilities, and you’re looking at a mini-tablet computer, and we think there’s a substantial market for that.”

These updates would make sense and would make people feel better about spending more on the iPod Touch than the iPhone 3G.

[Via AllyInsider]