I was investigating some new hardware and software at the nearest Apple store the other day, and took some pictures of their newest products.
I'm not trying to sell it, but I definitely see it's appeal. Also, the iPad and iPhone act as remote controls for it. Too cool.
Given that the Nano tends to be used for excercise, I don't know if I think a touchscreen is the best way to go for this player, but I can't deny that fiddling with it for a few minutes wasn't fun. I have no need for a dedicated player at this point, but I can see the iPod Nano being a great first mp3 player for someone who just wants to listen to their music easily and not take up a huge amount of space in their bag or pocket.