The rumors of an updated iPod Touch are getting hot! According to Wired's sources, Apple's Chinese factories are already building the new models, which include the updated camera of the iPhone 3Gs and microphone capabilities. While the former is an obvious and welcomed upgrade, the latter has more implications. Coupling the built-in microphone with Skype makes this iPod a versatile communications tool. Wired noted:

"Rumors have swirled about Apple readying a new version of the iPod Touch with a camera and microphone, which, c****ined with a Skype account, would pretty much obviate the need for a home phone line once and for all. In addition to these voice-over-IP capabilities, which should have telephone providers quaking in their boots, the microphone (and camera) would enable the iPod Touch to understand voice commands, capture video and images, and work with a wider variety of programs in the App Store."

Supposedly, the new iPod Touch is coming out this fall. That's not good enough. I want this iPod. Like now. I love the iPhone from a hardware standpoint, but so many of my friends in New York, San Francisco, and Los Angeles complain about AT&T's network. This model would offer me users the capabilities of the 3Gs without the headaches that come with being an AT&T customer. If the updated iPod Touch comes in a 64GB model, it would be perfect for me.

Any of you interested in this rumored version of the iPod Touch? Which feature is more meaningful to you, the camera or the microphone?