Folks at 9to5Mac have been informed through credible sources that the new iPod Touch 4 will indeed feature a back camera to shoot photos and videos, but it will be only be a 3.2 megapixel camera and not a 5 megapixel like the iPhone 4.
This coincides, partially, with the prediction made by UK retailer John Lewis that stated that the new iPod Touch 4 would feature a front-camera for video calls and FaceTime, while a rear camera would allow iPod Touch users to shoot photos and videos.
On a personal note we believe that front-facing camera and FaceTime on an iPod Touch is a no-no as it would increase the cost of manufacture significantly and perhaps for now all Apple wants is to keep the iPod Touch ever-affordable for users who want to have fun with iOS but do not want buy an iPhone.
The camera rumor is not all, we also hope to see a redesigned body for the iPod Touch 4 which will hopefully be released on a Apple media event this fall. Keep your fingers crossed!