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Widescreen iPod video is next?

iPod Video Widescreen

TUAW is on the case, letting us know that the latest Apple rumor is a 3.5" touchscreen-enabled media player. The mockup pictured here is from Rainy Day Magazine. We've been waiting for a widescreen video iPod for a while, but TUAW doesn't expect it till the end of the year if at all. I just want to know if they'll let me download 720p versions of Lost from iTMS.