iPod Touch : currently in Final stage of product life cycle
According to a recent article made by appleinsider ,
Ming-Chi Kuo of KGI Securities believes that iPod Touch is being effected due to iPad mini but however since , iPod Touch sales account for nearly half of iPod sales , Apple will continue to sell it but investment in development of iTouch would become passive and he believes that iPod business is now being diminished due to iPhone and iPad.
Source :
http://appleinsider.com/articles/12/10/24/ipod-touch-viewed-as-in-final-stage-of-product-life-cycle
What do u guys think ?
As far as i know , by Next year , iPod Touch will be dropped to $199 (i.e 5th gen) and it will rock even more.
Since last year , iPod Touch is lagging behind iPhone in chipset.

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