More Evidence of an iPod Nano with Camera Surfaces?

Critics were predicting the end of hand-held HD cameras like the Flip almost before they had a chance to make their mark on consumer electronics and while the devices had a great run, it was always fairly clear that camera phone technology would eventually outrun such a business. Last April we posted about how the iPod Nano may have been the beginning of the end for the Flip Video Camera.

Now, MacRumors is posting all about some new photos that, if true, will put the same video capabilities in a product half the size. The leaked images suggest that the camera will make a comeback in a re-designed Nano.

The photos are certainly convincing, but it’s not the first time this rumour has cropped up. In April, Taiwanese site leaked a photo with a hole in the design, presumably for a camera. That was followed shortly with another photo of the casing from the outside and without a clip.

As for the photos from above? M.I.C. Gadget clarifies these new images as old prototypes from two months ago:

According to our factory sources, Apple have problems with the lens aperture for the next-gen iPod nano, the iris is not functioning correctly to allow the advantages of the low aperture to be utilized. Every shot was overexposed. Apple intends to correct its mistake, but the problem still exists in this prototype that is manufactured two months ago. What’s more, a 2-megapixel camera was tested, but it was unsatisfactory — the photos look washed-out and flat. The good news is… this 2-month-old prototype is close to final product, the UI is done.

These new photos show a much more complete, polished iPod Nano. My question to you is, would you actually use that camera if you had it?