The iPhone might be the best iPod ever, but as Steve Jobs keeps saying, if no one else can compete with Apple, Apple will compete with itself. Witness a number of new iPod rumors that have just surfaced.

First up, iPhone Atlas brings word of a new iPod Touch. Seems the latest developer deep diving in the upcoming iPhone 2.0 code, in addition to cut and paste, has discovered strings for what looks like iPod Touch 2,1. To give perspective, the original iPhone and iPod Touch were 1,1, while the iPhone 3G is 1,2. A jump to 2,1 then looks to be an upgrade quite a bit more significant than what the iPhone just enjoyed. A replacement? An additional model? A twice-sized iTablet? And what will this mean for the similarly Mobile OS X powered iPhone?

Next up, iLounge says the next iPod Nano will shed its "phat" and grow tall again to accommodate an iPhone/iPod Touch wider-screen aspect ratio of 1.5:1 (bumped from the current 1.33:1). iLounge -- and almost everyone else who picked up the story -- headlined the form factor as "Zune-like", for obvious link... er... attraction purposes. Well played!

Also, while rumors have swirled over multi-colored iPods being introduced in the next generation, which harken back to marketing mishaps like the Flower Power iMac of yore, MacObserver reveals a new Apple patent application for "computing device with dynamic ornamental [i.e. color changing] appearance". Though supremely awesome in concept (Predator-like chameleon camo class awesome), iLounge claims any rumors of multi-colored iPods coming this year are inaccurate. Instead, each model will sport its own anodized aluminum skin, much like the old iPod Nano.

Lastly, Apple Insider says Apple is advising resellers to stock up soon, as iPod shortages this way come. Clearing out stock in preparation for another Special Event this autumn? The last one not only debuted the iPod Touch, but a new iPhone Firmware which included the WiFi Music Store, so we certainly hope so!