A downgrade? I dont think that at all, why would you need a camera on a mp3 anyway? What i like is that apple really went back to the root of the ipod which is a mp3 player for the nano, and then upgraded the touch because thats considered the iphone without the phone and has more demand. Yes it lost video playback and the games, and i think thats to be expected when this is really such a small first of its kind as its a small touchscreen mp3, apple usually works out the kinks when it comes to something as different as this version of the nano. I do think next september we will see the nano's screen get a tad bigger and have its default games (optimized for the small touchscreen) and video playback, always there are rumors of a youtube app on next years version as well. So imo i think this can be a solid ipod nano, theres was never a need for a camera, and a bad one at that. This is apples way of testing the new touchscreen nano with consumers, and what they need to add and fix, clearly alot of people want video playback and some touchscreen optimized games, and then there are people that like thats its just a mp3 player at its core. Expect some slight changes and addons next year