Stickybuffalo.com

Apple Insider suspects the following:

The player will reportedly be the first non-Multi-Touch iPod to sport a motion or orientation sensor, according to two people familiar with the matter.

I think, based on the elongated form of the new Nano (which seems to be dependable as the shape, at this point) the screen rotation for watching video on the compact screen would be a no-brainer. Here’s hoping I don’t come away from today wishing for the updated Touch (should it arrive).

Update:
Thank goodness it’s not a faster ipod touch! The volume rocker and the battery life enhancements will be nice but an estimate for music and app use while on the wi fi will be a lot shorter than video/audio. Last.fm or pandora come to mind.