During Apple's annual special music event today Steve Jobs introduced a new iPod nano that removes the click wheel and adds a 1.5-inch multitouch screen and an iPhone-like background and set of icons including Music, Genius, FM radio (hey, where's that for iPhone?), Fitness, and iTunes. It also has some interesting new gestures like touch and twist to rotate the screen. (No accelerometer?)

“This is the biggest reinvention of the iPod nano since its debut in 2005, and we think users are going to love it,” said Steve Jobs, Apple’s CEO. “Replacing the click wheel with our Multi-Touch interface has enabled us to shrink the iPod nano into an amazingly small design that is instantly wearable with its built-in clip.”

Available in nano chromatic colors. $149 for 8GB $179 for 16GB. They ship next week.

Check out the screen in the shot above and one more afte and let us know what you think!