The 5th generation iPod Nano, broke away from the iPod family tradition when released thanks to the addition of a VGA camera. This should have put the iPod Nano up against mini video cameras like the Flip range, but Apple decided to give their device the cheapest possible camera on the market and limit users to only video capture (they must have known it would take lousy stills).
Gizchina News of the week
This is a case of copy overtakes the original, as this Shanzhai (cloned) version of the iPod G5 uses a 1.3 mega pixel camera to take both video and still shots. Still not the greatest, but what do you expect for 400RMB ($55)?
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