Well, Steve finally gave the scoop on the new iPod. It’s 5 Gb (1000 songs says Steve, adjust with the Jobs distortion factor accordingly), thinner and lighter than the competition. It’s priced at $250, $50 more than the average MP3 Flash players.

It sounds good except that Jobs also announced that the entry-level iPod was switching from 10 Gb to 15 Gb, while keeping its original price of $299.

Maybe there are people who will want to save $50 at the expense of 67% of capacity but I really doubt they will be legion. It seems to me the iPod Mini is hitting exactly in the middle of the two sweet spots: either lower the capacity and the price or bring it closer to the regular iPod. I predict disappointing sales for that very reason, but time will tell…