According to Trusted Reviews Apple is planning to release an iPod with a touchscreen in December:
In a very matter of fact tone I was told that the product was not designed for the current generation of device, but the official 6G iPod (fanboy art above - the current generation is referred to as 5.5) which is to be released in December. His company’s device only comes onto the market shortly before then and would benefit hugely because the new iPod would sport a screen that filled the full side of the device and consequently offer higher resolution video.
He explained that Apple had told him 480p content was the target but could only promise whatever did appear would be of a much greater quality than is used today. When I enquired about the control method he confirmed it would be virtual (see official Apple patent application above) and that essentially Apple was finally delivering the type of device we’ve seen journos (including myself) talk about since the turn of the year.