Apple has overhauled the entire iPod line adding a widescreen nano and the iPod touch which features the iPhone’s touch-screen interface. They are also apparently dropping the 4GB iPhone and lowering the the price of the 8GB iPhone by $200 to $399!

Also added is the iTunes Wi-Fi Music Store which allows wi-fi equipped iPods and iPhones to preview and purchase iTunes music via their wireless connection. The purchases are synced back to your iTunes library when the iPod/iPhone is docked.

Also announces was an agreement with Starbucks that will eventually allow wi-fi iPod, iPhone and Mac/PC laptops running iTunes to view information about the song currently playing in a store (and the ten previous) so it can be purchased via the iTunes Wi-Fi Music Store.

Despite repeated teaser songs during the event, there was again no announcement regarding availability of the Beatles’ catalog in the iTunes Music Store.

For more info:

• Apple’s iPod Site
• Engadget’s Live Blog of Today’s Event
• Watch Streaming Video of the Event

2007-Sep-14 UPDATE:

Early iPhone adopters who did not get reimbursed for the price drop by other means are eligible for a $100 Apple Store credit. Start the process by visiting:

• Apple - iPhone - Store Credit