Each year there has been an update to the Touch in September, but this is the first year that Apple has missed the usual cycle, as they have done with the iPhone. There is so much that needs answering; will the Touch finally break away from being just a fancy music player, or will it be discontinued all together? The latter does seem like a possibility, and instead steering those customers towards a cheaper version of the iPhone without contract instead?

For years the iPod Touch has been like a stopgap device for those who felt that they did not want the use of a phone, but if the price was more competitive, just maybe consumers might feel a little different? One has to wonder if the Touch is more like Apple TV, as it seems to be one of those devices that the company is not too bothered about?

With each upgrade the Touch started to be more like the iPhone, but always being that one-step behind. Well consider that the iPhone 4S will launch next month, this will be the device that is one-step behind the high-end iPhone, meaning that there will no longer be a need for the iPod Touch.

First of all, take a look at this new image, which has been provided courtesy of 9to5Mac. They themselves believe that these images are fake, but you should be aware that it has been heavily rumored that the next iPod Touch, aka the 5th generation version, will include a touchscreen home screen, rather than the physical button that we’re used to seeing on the iPod Touch and also the iPhone.

Even if this image does turn out to be a fake, it’s probably a very good indication that the real device will look something like this when Apple decide to unveil it – but will this be at WWDC 2011 this Summer, or at their Fall event afterwards?

What are your thoughts on a new iPod Touch with a touchscreen home button – Do you think it looks better or worse? In our opinion, it makes the device look a lot more sexy in our opinion. It this all turns out to be true, it will be interesting to see if Apple also include a touchscreen home key for the iPhone 5.