So there's a built in microphone in this new generation then, correct?
Yes, there is a built-in microphone and a speaker on the device itself. It comes with earbuds with a built-in microphone, and a button that allows you to Play, Stop, and Skip to the next song, so you don't have to fish the gadget out of your pocket to control it when you're on the move.
Regarding the camera, I agree. I'd rather have more megapixels too. But, I'd much rather have this new iPod touch with its limited resolution camera, over the older models which had no camera at all. I'd even rather have this new iPod touch over the cameraless iPad. To me, the ability to snap photos in the moment is critically important, and the moment is more important than the megapixel count.
And if it's megapixels you're looking for, you came to the right place! B&H sells all kinds of cameras that have way more than 0.7MP.
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