Apple iPod Touch was going to have a Camera, they cut it out.
This prototype iPod Touch indeed has a camera, and I like it. But it didn't make it to store shelves and into your pocket.
When that device will be released though, no one knows. Reports suggest that "Apple pulled the camera module out because of quality problems, and will introduce it as soon as the bad part is fixed — possibly within weeks."
But if Apple were able to ship the device in weeks, instead of months, Steve Jobs would have announced it last week!