New ~10.5-inch model with nearly bezel-free design rumored.
Apple Media Event September 7th? iPod Touch, Apple TV, Show Rentals
According to Bloomberg, Apple will use this venue to launch the new iPod Touch, $99 Apple TV, and the 99-cent TV show rental service. The September 7th date also falls on the last day of Apple's back to school promotion where they are offering a free iPod touch with purchase of a Mac.
The new iPod touch screen parts are already being obtained by 3rd party repair shops as shown here:
The screens contain a hole near the top that suggests the iPod touch will be getting a Facetime camera as part of its fall update.