The iPod classic looks like it's getting the runt's end of the "Let's Rock" magic wand today-with boosted storage to 120GB for $250, up from 80GB for the same price. And it's death for the 160GB thickie, matching the Zune's lineup to a tee. Same form factor and colors as last time. Now, the largest iPod money can buy has been downgraded by 40GB-seem like a strange move to backtrack like this to anyone else?
Apple seems to be moving towards the theory that people want flash (touch screens and such) over storage size. Overall, I'm not surprised they phased out the largest model.
Then again, my 90% of my music collection leaves over half of my 30gb iPod empty, so I guess storage isn't that much of an issue for me either.