Some people were disappointed when Apple chose to shrink the iPod Nano, give it a smaller 1.5-inch multitouch display, and lose the built-in video camera. Well, if this photo from the Taiwanese Mac Blog Apple.pro--which has been fairly reliable with Apple "spy" pics in the past--is any indication, Apple may be bringing the camera back while retaining the current-generation Nano's tiny form factor.
It would be interesting to speculate how you'd shoot with such a small camera, but one obvious method would be to clip it on lapel-style, turning the Nano into sort of a spycam with the proper camouflage. As I wrote before, I'm personally more interested in seeing the Nano get Bluetooth (so you can use wireless headphones with it), though combining a camera with Bluetooth would be intriguing, opening up the possibility to broadcast video wirelessly via a Bluetooth cell-phone connection.
The next Nano would be the seventh-generation model. If the past is any indication, Apple will unveil its new iPod products in the September time frame.