What could well be the first Apple iOS device to ditch the physical home button and replace it with a capacitive key looks to have leaked. Images of what's tipped to be the fifth-gen iPod touch have been sent to CrunchGear, complete with 128GB of internal storage and both front and back cameras.
According to the Apple PMP's info page, the leaked iPod touch is running firmware 4.2.1MC14; it's also marked model MC550LL. That code has been linked both to a fourth-gen iPod touch variant and a Mac Pro, though the firmware version is relatively old in comparison to what's found on current models.
It's the second iPod leak of this week, with what appears to be an iPod nano with a space for a rear camera being caught in the wild on Monday. Apple has held off from upgrading its flash-based iPod models to 128GB for a couple of iterations, with the maximum capacity remaining at 64GB. As for the capacitive home button, the change has been suggested before after home gestures were spotted in recent iOS builds.