iPod Superstore“I spent the better part of my Labor Day weekend testing Apple’s three newest iPods—the latest versions of the Touch, the Nano, and the Shuffle—and found myself generally impressed with Apple’s changes,” Arik Hesseldahl reports for BusinessWeek.

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“Of the three new models, the Nano ($149 for 8GB; $179 for 16GB) has changed the most from prior versions,” Hesseldahl reports. “Once about the size of a stack of three or four business cards, the latest iPod Nano is, at less than 2.5 square inches, now about the size of a matchbook. Its marquee feature is a touch-sensitive display similar to, if significantly smaller than, that found on the iPhone.”

“At first it seems ridiculous to select and control the music playing with the diminutive on-screen buttons, until you try it,” Hesseldahl reports. “Tapping the ‘playlists’ button brings up a selection of iTunes playlists, while swiping your finger across the display from left to right will take you to different options, such as the FM radio, the photo viewer, and a pedometer to help you track your daily run or walk. Album art looks surprisingly clear on the tiny display, though the text on the images can be hard to read. One clever feature: With two fingers you can rotate the display image to suit the player’s position. Two metal buttons control the volume while a third serves as a wake/sleep button for when the screen goes dark.”

Hesseldahl reports, “While the last three iterations of the Nano, dating back to 2007, have played video, this one does not. It’s the first time I can remember that Apple has reduced capabilities from one generation of the iPod to the next, and frankly it’s a smart move that speaks to its new emphasis on audio. With video available on so many other Apple devices, the older Nano’s screen size made it less than optimal for watching iTunes TV shows and movies, and most owners ignored video in the first place. Also gone? The video camera that appeared in the previous-generation Nano.”

Read more in the full review, which includes iPod touch and iPod shuffle, here.

MacDailyNews Take: There are now two iPods for active people (runners, cyclists, etc.) and/or those interested in music-only digital media players: iPod shuffle and iPod nano. The former is for people on a budget or those for whom 2GB is plenty and the latter is for people who’d like a bit of Multi-Touch™ goodness and/or more space (8 or 16GB). Both are laser-focused on music. iPod touch is a whole different ballgame with music as only one of its very extensive list of talents, instead of being its sole focus as with iPod shuffle and iPod nano. Apple has found a winning formula with its iPod lineup now that they’ve figured out what the nano is supposed to be. Let’s face it: iPod nano was a goofy amalgam of features in its previous generation.

In fact, slap a 2GB chip into the current nano as soon as it’s feasible for Apple to price it at around $69 and the iPod shuffle need no longer exist. It’s not hard to envision a two-pronged iPod lineup in the not-too-distant future: iPod touch in 16GB, 32GB, 64GB, and 128GB and iPod nano in 2GB, 4GB, 8GB, and 16GB capacities with pricing running from around $69-$179 for nano and $199 on up for the touch. If something like that happens, it’ll be bye-bye iPod classic and iPod shuffle.

[Thanks to MacDailyNews Reader "Fred Mertz" for the heads up.]