Dan Nosowitz of Gizmodo couldn't help himself after the It's Only Rock and Roll Event hosted by Apple earlier this week. During that event, Steve Jobs officially unveiled the iPod nano 5G, saying that the new MP3 player is on sale right away. Going through Gizmodo's review, we learn that the screen goes from the 2.0-inches on the 4G nano to the 2.2-inches on the 5G nano. The resolution, as a result, gets a bump from 240×320 to 240×375. The embedded VGA camera will only do video (no stills), but it does come with a series of built-in effects and filters, including heat vision, tunnel vision, and security cam vision. The video quality is actually quite good, comparable to some of the standard-def pocket camcorders out there.

The iPod Nano is the best-selling MP3 player of all time, and this new model should keep that record alive. It's still an incredibly small and thin player with intuitive navigation and popular software, priced competitively. The new features are really nice—the video camera is good in a pinch, enough to supplant standard-def pocket cams—and the bigger, brighter screen makes navigating through the added options. The video camera is a major feature addition, but this Nano is still an incremental upgrade. Apple hasn't changed the capacity or price in years—does it really not make sense to release a 32GB version? The 8GB version, only $30 cheaper than the 16GB, seems undesirable and outdated. But at this point what else could Apple add to the Nano? I'm just surprised everything they have added actually fits.

The iPod Touch and other full-featured touchscreen players like the Zune HD and Sony X-Series are the big attention-grabbers these days, and the Nano will surely be left behind as dedicated media players yield to convergence. The steady price and capacity of the Nano and the dropping price and skyrocketing capacity and functionality of the Touch signals the sea change better than anything: Soon the Touch will be top seller, and the Nano will slip into being a niche product for people who really prefer small form factors. There is much speculation that the Nano got the video camera—and the Touch did not—in order to slow this inevitable decline.

So the big question: Should you buy the Nano? Yes, if you want an easy-to-use, slick, full-featured and small PMP. No, if you just want an 8GB vessel for your MP3s. If you're in the market for both a PMP and a cheap pocket camcorder, it's definitely a "yes." But think it over. If you've got last year's Nano and you have an interest in decent video quality, better to spend the money on a Kodak Zi8 (or the newly discounted Zi6). Or just wait for the iPod Touch to get a camera—now that's an upgrade. The camera alone isn't worth $150 or $180 if you've already got every other feature—maybe that's the reason Jobs himself said it was "free."