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there is bit of a discussion there, but the main topic said...
"Just when you thought the only differences between the iPhone 4 and the iPod Touch were the size and the phone, a closer look reveals that the Touch actually has a different camera. Apple’s specifications page for the Touch lists a resolution of 960-by-720 pixels for the rear camera, which is roughly one megapixel. That’s several steps below the 5-megapixel camera seen in the iPhone 4.
Then again, the iPod Touch is about one millimeter thinner than the iPhone 4 (which is significant when it comes to pocketability). Anything bigger than a one-megapixel sensor probably would have been a squeeze, especially when you consider that the Touch includes a front-facing camera, too.
When Apple refreshed its iPod family last year, many expected the iPod Touch to gain a camera and were left disappointed when it didn’t. However, a teardown by iFixIt revealed that was just barely enough room for a camera. iFixIt CEO Kyle Wiens speculated that the feature was omitted due to engineering challenges.
Long story short, the iPod Touch’s camera probably isn’t great, but we’re glad it’s finally here."
Still trying to make the ordinary look extraordinary