Giving users mobile access to their entire (up to iTunes Match's 25,000-song limit) music collection in a 2012 iPod nano-sized package is an idea with merit

The watchband ecosystem that has grown up around the current (2010) generation iPad nano is going away — Apple is obsoleting their business model — see ya, guys. That said, in addition to gaining a larger, more touchable display, the latest rumors from a generally reliable Asian source posit the 2012 iPod nano will support Apple’s iTunes Match storage and syncing service.

Apple hasn’t updated the iPod nano for two years. And, even though the media player market is in decline, perhaps terminally so, Cupertino’s iPod product line still dominates and brings in billions.

That said, earlier rumors that the 2012 iPod nano is coming soon ring true.

Whereas an update seems a sure thing, aside from rumors that the 2012 iPod nano will have a larger display (artist renderings shown above and below), perhaps reminiscent of the 2008 model, little is known about Apple’s plans.

Enter Japanese fan site Makotakara, which offer the following, informed or otherwise, insights about the 2012 iPod nano:

Next iPod nano may equip Wi-Fi antenna on side of that case, and support iTunes Music Cloud in order Apple to provide a iconic product to promote the largest Music Store in the world.

A small, perhaps very small media player with Wi-Fi connectivity? Hmm, it seems doubtful that Apple would include email and browser functionality. However, giving users mobile access to their entire (up to iTunes Match’s 25,000-song limit) music collection is an idea with merit…

What’s your take?