Michael Arrington of TechCrunch says that 3 independent sources have confirmed that Apple is getting ready to build an iPad type of large iPod touch device. Specs given are sparse but they anticipate a 7-9 inch display.
The August release time frame coincides with Apple's yearly iPod refresh. This would also give the PA Semi sufficient time to have turned out a ARM Cortex class processor.
Along these same lines, we think some cool stuff should hit during WWDC in the form of a higher powered iPhonebut we have no word from any sources.