iPod Touch getting a permanent price drop?

Rumors are going around, and ads in Apple's Dutch iTunes store are sort of confirming, there might be an iPod Touch Price drop coming soon. On the Dutch iTunes ad the price drop was roughly 80 Euro, which is about $120, would you buy a new Touch if they cost $120 less?

I know I would, at least if I didn't already have one I would. They are pretty amazing players, and at $120 less I might be tempted to trade my 16GB up for a 32GB model.

Now, the price drop ad in the Dutch iTunes Store could have been an error, or it could have been a sign of things to come. But there have been talks of both the iPod Touch and the iPhone receiving price drops with the iPhone's price drop potentially coming due to the impending release of the 3G iPhone, it would expand the iPhone user base to all those people unwilling to pay the four or six hundred dollar price tag to those more willing to pay $200-$250 for an iPhone, and who knows, if they drop that low, they might even start getting subsidized.

[via Apple-Touch]