[Holbein]

The article failed to mention that the previous $199 ipod touch hasn't had a camera, but now it does.

Apple mentioned in a previous keynote that that $199 price point is kind of a magical barrier. If you can lower your price to <200, lots of people consider it that previously have not thought about buying it: https://www.youtube.com/watch?v=BfgyQcyDthw#t=425 (jump to 7:05)

So what they tried to communicate, badly, was: a product that is already a best-seller now also includes a camera. So now it has the potential to upend another category after music, communication and gaming: photography.