Apple has just unveiled new 4" widescreen iPod touches that will include the same A5 processor that powers the current generation iPhone 4S along with a new and improved camera system that'll support FaceTime HD. It'll be available in 32 and 64 GB capacities for $299 and $399 respectively.
The A5 processor will increase the iPod touch's processing power to be twice as fast as its predecessor while adding dual core graphics support. The new 4" widescreen display will line up with the new iPhone 5 screen size. It also manges to shed some thickness becoming the lightest iPod touch ever.
The camera system will also be improved and will include a 5 megapixel sensor and the same sapphire crystal construction the iPhone 5 will be receiving.
The current generation iPod touch will remain on store shelves for $199 and $249 for the 16 and 32 GB models. You can find more info over here at Apple's product page.