iLounge is reporting that the new iPod Nano will be stretched back out to it’s old height, and in effect, will look almost exactly like the failing Microsoft Zune. This report ends speculation that the new Nano would feature a touch screen like the iPod Touch and the iPhone.

The larger screen is reportedly for increased video visibility, as anyone who’s tried to watch There Will Be Blood on the iPod Nano can attest, the 2007 Nano’s screen is too small to capture the veritas of Daniel Day Lewis. This new version’s screen will function like the iPod touch, as users will have to turn the iPod in order to view videos.
[iLounge via Gizmodo]