There have been rumors of a new iPod being announced Monday, and now it seems there are details and pictures. (It will be featured on the cover of Newsweek with Steve Jobs. See details here and here.
The new model will be a bit thinner and have a scroll wheel a la the mini (the four buttons are gone). Rumor has it there will also be a price drop. (I don't know if you guys have noticed, but there are already some retailers dropping the price of the 3G models - in the past, I heard that Apple wouldn't even let them put it on sale).
The Newsweek article is up, but it looks like their servers can't handle the load.
Seems like a nice incremental upgrade, but probably not enough for most people to upgrade. Right now there are two reasons I would consider upgrading: A full-size model with WiFi / Bluetooth and a color screen or a 10GB mini. After seeing the mini (my girlfriend and a good friend both have one), I'm very impressed (I didn't think I would be). It really is a noticeable difference in your pocket, and a very slick device.