Michael Arrington at TechCrunch is reporting: Large Form iPod Touch To Launch in Fall ‘09:
We’ve got this from three independent sources close to Apple: expect a large screen iPod touch device to be released in the Fall of ‘09, with a 7 or 9 inch screen. Prototypes have been seen and handled by one of our sources, and Apple is talking to OEMs in Asia now about mass production.
This will be a killer device-- it will completely change the game. These kind of innovations are rarely about hardware, however. This is really about the maturing of the cloud.
If it weren't for the advances in cloud computing we wouldn't be giving this device a second thought. Without the cloud, we'd still need a notebook. Apple owes a big thank you to Google, et al for making this device possible. I can't wait to get one.