It's leaked, but it's interesting.

The guys at iLounge have gotten hold of a picture of two possible new displays for the iPod touch - one a 2.8" version, the other a 3.2" version. Both sizes would be a reduction from the 3.5" screen found in the current model.

The manufacturer, Host Optical, has shown what it describes as a "projected capacitance touch panel" along with a collection of features that would point towards the displays being superior to those used in the original iPhone. Per the company, the displays have "no significant" aging effect in which they become progressively less sensitive over time and are claimed to be waterproof, more durable over time and resistant to high humidities and temperatures.

Since one of the major concerns over current-generation iPhones is the continued touch sensitivity of their screens, Host’s version could be a nice step up.

The article states that there's little to no change that the 2.8" screen will be found in Apple's anticipated 3G iPhone but could act as a component for an iPhone mini, an iPod nano or a fourth generation iPod nano. The schematics for the display place two sensors to the right of the ear speaker, a detail which doesn't track with what's been heard about the 3G iPhone and the black frame would include significantly more space between the screen and the Home button than the current iPhone faceplate.

It's speculation at this point, but it could lead to some cool announcements come WWDC next week. Let us know what you think over in the comments or forums.