It looks like that Apple Tablet PC like touchscreen technology we saw in many recent blog posts may be coming soon to a video iPod. This article on ThinkSecret certainly hints that way. None of this is solid yet, but apparently there will be a 3.5 inch screen with touchscreen technology that reveals a digital click wheel when the finger meets the screen.
James Kendrick was all over news about the patent info with good info on his blog and recent podcasts. There are also some pictures posted on jkOnTheRun from the patent application. (These pictures are more conceptual about the touchscreen technology and not specifically the video iPod.)
If this comes to be it does raise an interesting question. iPods are notorious for the grease and grime from fingerprints smudging the screen and the players. (I'm surprised we haven't yet seen a CSI episode where the bad guy is caught because of this.) So, I'm curious how this touchscreen interface will work with the screen surface. No one wants to have to keep wiping the screen clean to watch video.