Four years later, there's a new Avengers and Star Wars movie and Apple released an updated iPod Touch.
And who still uses an iPod in the golden age of the iPhone?
But there are several situations where the new iPod makes perfect sense, like as a kid's mobile gaming system (especially once Apple Arcade is out) or for hospitals to track medical records and translate different languages or in retail and food service as a mobile register.
Pretty much every employee at an Apple Store has an iPod Touch inside a special bar code/credit card swipe case to ring up your items.
Keeping the new iPod the exact same size as the previous one makes it easier for Apple employees to swap out devices without the need of replacing those special mobile register cases.
If you gave your kid a new iPod Touch for $199 and an Apple Arcade subscription (let's say it's $5 a month, but that's just an educated guess since we still don't know the pricing) you'd have a solid gaming experience with access to 100 games that is a lot cheaper than a $299 Nintendo Switch and a single flagship game that costs $50-60.