I agree, as phones become more advanced in technology there will be no need to buy a new ipod and people will think of it as a money saver because they get two things in one.

As it is currently, phones are already evolving in two directions. One is the direction where phones are gaining more and more options, apps and abilities making them less “phones” and more multi devices that have even evolved into removing the calling and texting ability (for example the iPad.). However there is also the other direction where phones have only the ability to text and call people, and nothing else, which the phone was originally intended for. Simple communication. These phones focus on durability and the simplicity of calling and texting. So as long as there is a market for either of these, I believe that this all comes down to personal preference. As long as the technology exists and there is money to gain from it, it exists.

From personal experience, I sold my iPod touch as soon as I got my iPhone 4S. I figured I didn't need the iPod if I could access music as well as everything else on one device. I do agree that it depends on personal preference, however people today are huge fans of “all in one” things.