Yes it’s just a rumor, but being stuck on a Verizon contract for the next two years I’m incredibly excited about this (and I’m placing bets that it will happen). The iPod touch you know and love is touted to get a major overhaul according to John Lewis from the Electricpig. He’s overheard some industry chatter that the iPod touch is going to get a 5MP camera, HD video, and…. FaceTime. Of course it’ll have the gyroscope as well, and probably that A4 processor. It might even be faster than the iPhone 4 as it’ll be touted for gaming.

Now if your jaw didn’t drop, there’s one more possibility that 9 to 5 Mac considers: 3G. If the iPod touch could have a 3G plan like the iPad, then that pretty settles it for me (though in all honesty it probably won’t happen). Besides, I’m still on the 1st Gen iPod touch (which is stuck at the 3.1.3 firmware, so Apple has pretty much dropped support for it), so you know I’m due for the latest and greatest non-phone pocket internet, fitness, gaming, and music device.

If it can be my camera and camcorder too, I’d be the happiest college kid ever until I can get my hands on the real deal. And Apple did say they were planning on some new camera devices this year – we’ve only got a few more months to wait folks until the required iPod unveilings.

Let us know what you’d like to see in a new iPod touch in the comments below!

[Electricpig via 9 to 5 Mac]