I know, I know, you've heard this one before, but now The Examiner is quoting an inside source at Apple who says a camera will be coming to the iPod touch this Spring. Rumors and theories have been circulating ever since the Nano was released with a video camera, and the iPod Touch was not. In September, Steve Jobs explained the reasoning behind the missing camera, that the iPod Touch is meant to be primarily a gaming device, and Apple's goal was to keep the price down as much as they could.
The article, later quoted in the New York Times says:
"We have heard from an inside source who claims the camera version of the iPod Touch 3G will be released this Spring. The source confirms to us that the iPod Touch 3G with camera had actually been planned for release this past September, but had problems passing quality control."
According to the source, the iPod Touch camera will be the same as the current Nano camera, which takes video but not still photos. There's no word on a possible release date, though I'm curious if Apple would release another iPod Touch upgrade so soon after the latest version's September debut.