A picture has recently surfaced on the web showing what could possibly be the new 7th generation iPod Nano. According to this image, the next iPod nano will retain its same small form factor and multi-touch screen, but will feature a built-in camera in the back, getting rid of strangely designed clip.
A Taiwanese Apple blog posted the image a couple of days ago. The site has correctly predicted the past six versions of the device, so the chance that this will be the next version is highly likely.
The previous generation of the iPod Nano (6th gen) had a rear-facing camera also. However, Apple came to the decision to remove the camera from the 6th version, the return of a camera to the device seems like a likely scenario.
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