iPhone 5:
Same basic design as iPhone 4
A5 processor
Better camera
Virtual wallet technology (possibly, but not necessarily, NFC)
Runs iOS 5 like a champ and works great with iCloud- and games
Single model phone for all carriers using hybrid GSM/CDMA technology
Big deal is price: $199 for 16GB, $299 for 32GB, $399 for 64GB… all unsubsidized. Buy from Apple for those prices and then get your own contract, or buy from a provider and possibly get the phone for lower cost or even free- or buy no contract and use the iPhone wi-fi only. Maybe carriers will offer low-cost data only plans, prepaid plans, or month to month options. Bottom line: at these price points and without a need for a contract, Apple will make the iPhone accessible to a much broader range of customers. And by now, Apple can afford to do it.
As a result, the iPod touch is renamed to just the iPod:
One capacity: 8GB (works great with media from iCloud, don’t forget)
Cost is $99. Bam.
Has a slightly larger screen compared to the previous iPod touch (but same resolution)- makes it even better as a gaming device or e-reader.
Camera from the iPhone 4 (a great camera, though not quite as good as what’s in the new iPhone 5).
Wi-fi only
Not sure what happens to nano, shuffle, or classic iPods.
Re: Steve Jobs- if he’s there at all, he’ll be a member of the audience only.