With camera
http://blogs.zdnet.com/ip-telephony/?p=1297

They are already available anyway, although admittedly not from Apple. Most have a phone included too.

but not as fluid as an ipod.

or as expensive for what they are.

Not a Camera at all.

Simply a photo viewer.

"family, friends" what so the camera takes different shots dependent on your relationship with the people in the photo, give us a break. Its just a fancy full screen touch screen ipod photo viewer thing.