Before the Rock and Roll event, there were many rumors being spread throughout the internet relating to the new iPod Touch 3rd generation was going to have a camera. A website called Covino and Rick leaked some images and a video of a prototype of the iPod Touch 3rd generation with a camera. It turns out, that the prototype was real!
Some of the leaked photos showed the inside of the device including above the screen. If you look at the image at the beginning of this post, the area above the screen for leaked photos and the released iPod Touch 3rd generation look actually almost identical.
It seems that Apple really did have a prototype of the iPod Touch 3rd generation with a camera but in the end, they decided to get rid of it and release the iPod without it.
This again brings up the thoughts about as to why Apple got rid of the camera on the iPod Touch. Steve Jobs in an interview with NYTimes did answer this question saying that Apple wanted to market the device as a gaming device rather than an iPhone without the phone. You can read more about it HERE.
