The whole front of the iPod would be a screen, if this rumour is to be believed. Can you imagine the scratching on this thing?

Think Secret can confirm recent rumblings that Apple is nearing completion of a completely revamped video iPod that will shed the ubiquitous mechanical click wheel for a touch screen and will sport a 3.5-inch diagonal display.

This video iPod, which has been in development and on the table since before Apple released the 5G iPod last year with video playback, will feature a display that will occupy the entire front face of the device. Sources who have seen the device report that it features a digital click wheel, one that overlays the touch-sensitive display and appears when a finger touches it and disappears when the finger is removed.

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Via thinksecret.com

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