What if all iPods could shoot video?

Iphone-camera-icon That's the question that many are asking with rumours emerging of a massive camera purchase by Apple.

Mike Arrington over at TechCrunch is wondering exactly what Apple could have in mind given that the rumoured size of a recent camera order is large enough to doubt that it is only for existing camera-equipped products like the iPhone and the various Macs that offer iSight.

The theory is that Apple could soon announce that their entire line of iPods will be refreshed to include digital photo capability at the least, with digital video being a more likely scenario.

As Arrington right points out, if the current iPod Touch was refreshed with the video capabilities of the new iPhone 3GS, and if it's current price point of $229 for 8GB was maintained, it would instantly become the most appealing low-end video product on the market.

I've been using Flip Video's MinoHD camcorder for a few months now, mainly to capture quick clips of the kids doing their thing, and I've found what many others have experienced: being able to carry a decent camcorder in your pocket means you shoot more video, more often and that means more memories captured (and presumably shared).

If Apple can add video capturewith the same (or close to) Flip Video's quality, to some or all of their iPods, it will be game-changer for the emerging low-end video camcorder market. I originally doubted that people would want a phone and an iPod in one device, but clearly the market has proven otherwise.

 When I had the chance to speak to a representative of Flip Video back in April, I asked him if he was concerned that the market might embrace a similarly combined iPod and video camera. He didn't seem to think that it would pose a major problem for his company, but clearly he's been thinking about it and what it might mean.

Is video capability something you want in your next portable media player? Or would you prefer to see some other feature offered first?