One of the more interesting features of the 5th generation iPod nano released in 2009 was its low-resolution video camera (no still photo ability). It turned out to be little more than a curiousity as few people appeared to use it. You can see the camera inside of the yellow square in the photo to the left. The camera disappeared completely with the tiny square 6th generation iPod nano emerged in 2010.
9to5mac, however, says that a camera may reappear in the 7th generation iPod nano. They also report that the tiny square form factor will remain.
Apple placed 720p video cameras in the 4th generation iPod touch released last year as well as the iPad 2 released last month. Both devices can only record sub-megapixel still photos. Will a 720p video recording capability create a market buzz for a 7th generation iPod nano?