I had wondered why Apple chose to name the latest high storage capacity iPod the "Classic". With Microsoft's roll out of the second generation Zune I now know why. At least I think I do!
Apple is, in all probability, going to drop hard drives from the iPod line up as flash drives get more memory. But that's not the entire reason, as I had thought. Apple correctly surmized that the first Zune would remain the flagship in its second iteration. By calling their hard drive player "Classic" it would imply "old" technology and this could have a negative effect on would be buyers considering a Zune.
Personally I like my 80 GB iPod (it's not the latest model) and would have a hard time deciding what to load onto a smaller capacity model. But I am 62, way outside the demographics of the average mp3 player market. The iPod Nano is their future; or is it the iPod Touch? It probably isn't the Zune!