16gb iPod was an afterthought, apparently

Not to be shown up by Microsoft, Apple, apparently, made a last minute update to the Nano line by including the 16gb model.  AppleInsider is reporting that several Apple stores received marketing material that only listed the 4gb and 8gb models and at the older price points of $149 and $199.  Just prior to last Tuesday announcement of the new line, Microsoft released information on the new Zunes.  The new Zunes were in capacities of 4gb, 8gb and 16gb for the flash versions (120gb for the hdd version) and priced at $129, $149 and $199.  Speculation is that Steve Jobs did not want to get shown up by Microsoft and decided on the 16gb version at the last minute. 

Apple sent messages out saying that the 16gb would be delayed by a few days due to ‘high demand.’

If the reason behind the 16gb model is true, and I suspect it is, then I doubt the ‘high demand’ claim.  No, it is probably more due to the ramping up of production than any thing else.

AppleInsider article

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