I'm pretty much in the same situation. have the old 80gb classic and need an upgrade, hopefully with more space.
Although I am hoping for a 128gb touch, I doubt very much we will see one in september. seeing ipad even limited to 64gb does seem to suggest any increase in flash drive will have to wait...even macbook air is limited to 128gb.
As for the classic, my guess is they will still continue selling them but most likely we will not see any updates.
Edited by LevA - 8/6/10 at 10:56pm