I kind of hope so. I like the speed sensitive scrolling thing, but they need some separate transport buttons, and perhaps something that jumps to now playing. It just feels like the UI is compromised by the buttons/wheel a little bit.
From the render it looks like it would plug into the top and become flush when fully inserted. Makes sense, but it would mean the top of the ipod would have a stupid indentation to allow it to plug in like that.