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I agree with Jenny - the new nano looks really ugly IMHO.
The touch just appears to be a cut down version of the iPhone and the main difference between the "classic" and older HD iPods is the size of the hard drive. The introduction of a 160GB DAP is great, don't get me wrong, but I don't feel that a huge leap in innovation has been made in this latest batch of products, certainly not relative to their previous offerings. Although some people have argued the lack of innovation in all their products for a long time...
I'll bet the iPhone costs a lot less than $300 to manufacture. I'd guess it's more like 20-25% of the retail price in the quantity that they are manufactured.
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