Latest iPods to be flash-based, only up to 16GB?

Taiwanese paper DigiTimes put out a report (read: rumor) on this year's iPod line (supposedly due this September), which is said to be primarily flash based (up to 16GB), eschewing hard drives entirely. 80 down to 16GB? One step forward, two steps back -- so yeah, we hope so, but not really.

[Thanks, Sam]