That market is dead.
Um, no it isn't. They still sell quite well.
There are plenty of Android equivalents of the iPod Touch, but I can't find any with a firmware more recent than Android 2.3
oh its niche at best. Being able to get a mid-range android phone for around $100 off contract has killed that space.
Dead doesn't excatly mean dead in the tech world. The PMP is a market with dimishing returns and lack of relevance in the overall tech space.
Don't get me wrong they have their place and a good portable media player is great (5th gen ipod nano, zune HD). But the device serves a very shrinking userbase.
Even's apple focus hasn't been on the ipod line for a while now. Even this year's refresh while better better than last year has been fairly miminal.
This week starts a busy week in the computing space.
Oct. 23- Apple ipad mini confrence
Oct. 23- Asus Vivo event
Oct. 26- Windows 8/Surface launch
Oct. 29- Windows Phone 8 Confrence
Oct.29- Google Nexus confrence
Oct.29- Tmobile fall lineup event
So far for the google event we have rumored that google is going to expand the nexus line. I'm expecting to see
Android 4.2
LG Nexus 4
Price drop on the Galaxy Nexus and maybe a minor spec bump
32GB Nexus 7
Nexus 10
Nexus Q 2.0
Though if I were Google I would have the high end LG nexus be at 4:3 or 4:8 and have a make another model at 3:6 to replace the Gnexus.