iPods getting cameras in the fall?

Although there's no hard evidence to prove this is true, 9to5Mac says that September's update to the iPod touch and iPod nano will feature a shiny new camera. True, the touch won't have much of a problem adding a camera, since it already is so similar to the iPhone, but where will a camera fit on a nano?

9to5Mac says the nano OS doesn't have as many capabilities as the touch OS. Also, since it's so small, will the quality of the experience be compromised?

Again, these are just rumors, so we'll have to wait until fall to see if these predictions are true. What do you think, and what would you like added to the new iPod models?