According to [iOS developer Will] Strafach, the updated iPod touch will carry a taller 1136×640 display, the same dimensions said to be coming to the iPhone 5 and in line with leaked photos from May said to show the iPod touch’s taller front panel. Strafach also says that the new iPod touch carries an internal code name of N78AP.
In a separate Tweet, Strafach says that the new iPod touch will use the S5L8942X application processor, which corresponds to the die-shrunk 32-nanometer A5 system-on-a-chip introduced in the revised iPad 2 and third-generation Apple TV earlier this year. The iPhone 5 is expected to carry a more powerful chip.
Based on rumors, it may have been worth the two year wait for a new iPod touch.