Ed Sutherland for Cult of Mac:

As the iPhone and iPad take on many of its features, iPod sales are expected to drop another 7.2 percent during the June quarter just ended.

Although Apple still controls more than 70 percent of the iPod player market, many features once exclusive to the MP3 player can be found in the iPhone and iPad. It’s unknown how long the venerable iPod will survive as many Apple customers turn to other devices for their music.

It’s clear iPods aren’t a ‘default’ device these days, but there’s still a huge market for them. Not everyone wants an iPhone, nor can everyone afford one. The same goes for the iPad, which is also significantly less pocketable than Apple’s smaller devices. Some people want a portable web-enabled unit that can play games and shoot video.

Frankly, if Apple made the iPod’s camera halfway decent and added 3G, I’ll bet it would become massively popular as an alternative to a smartphone. As it is, the device is still great for kids, for gamers, for people who want a lightweight device for shooting video, and for many other users besides.