iPod touch 4 teardown

The frenzied folks over at iFixit have torn down the iPod touch 4 and the big news -- or rather small news -- is that it only has 256MB of RAM, the same as the iPad and iPhone 3GS, but half what the iPhone 4 has.

Along with the tiny .7mp camera, lack of IPS display, and lack of a 128GB option, this feels like a cost-savings measure by Apple.

An unsubsidized iPhone 4 will run you over $600 or $700. No one would pay that for an iPod touch, so are lower specs worth the lower price?

I like the 512MB of RAM in iPhone 4. I can keep tons of Safari pages cached at once, unlike iPad where I can only keep 2. We'll see how iPod touch performs with it.

The almost forgotten Zune HD aside, iPod touch pretty much has its product category to itself. However, as we start seeing 7-inch and smaller "tablets" start to hit the market, the iPod touch begins to compete with them as well. Being relatively cheap is a huge advantage there, probably as much as access to the iTunes App Store is.

What do you think? 256MB a deal-breaker for anyone? Last straw? Or still not an issue at that price?