iPod nano

The iPod nano is now on the Apple US and UK websites. It looks so cool. And tiny to boot. Costing £139 for the 2GB version and £179 for the 4GB version, no Higher Education discount as yet. However they do look good and may drop in price in a few months. By which time my 3rd Generation iPod will probably die.
One thing that puzzles me though, is why they release the iPod nano so soon after the iPod shuffle. I know that they have different purposes, but the iPod ranges have changed a lot this year, with the release of iPod Photos, then merging the lines. Now this? Will it be worth investing in an iPod now, or are they going to bring another one out as well?
I ask thee Apple, where is the sense?

Paul likes the black one, and I agree, it is the best of the two colours. So cool.