New iPod Touch to go along with the new iPhone coming in June, June 7th I believe.
GPS in both and an electronic compass also in both. Why, you ask would a compass be cool? Because you could stand in front of a building and point at it with your iTouch and your screen would fill with information about the building. GPS alone cannot do this. All sorts of apps and games can take advantage of orientation. It is a very simple add-on but it is an electronic add-on. Software upgrade won't do it. (The new iPhone software shows electronic compass code.)