The iPad nano is popular among folks who prefer compact and no-frills PMPs. However, most users might not mind a camera, as long as it doesn't affect the device's design too much. It seems that the guys at Apple might be thinking in a similar direction, as leaked images of the yet to be released iPod nano suggest.
Reportedly, the 7th generation Nano will receive a camera module. There's no radical change to the device's look, and the clip-on design has been retained. To accommodate the lens though, the designers have cut a tiny hole through the clip. Looking at the images, you can tell that it is either a 2 MP or 1.3 MP snapper.
Although the images seem legit, this could also be an abandoned prototype. Either way, the Cupertino-based company seems to be working on such a product.