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According to iLounge sources, the new iPod nano will shed its Danny Devito form factor for a taller Arnold Schwarzenegger look.
The taller, skinnier, look will allow for a wider screen, that according to iLounge, will resemble the Zune 4GB/8GB. Blasphemy aside, the new, taller nano would retain its click wheel and users would tilt the device on its side to watch their favorite episodes of Flight of the Conchords.
As with all rumors, you should ingest this with a grain of salt.
Apple is expected to release new and updated iPods in September.