New iPod nano 1GB

It what many feel is the imminent death knell of the iPod Shuffle, Apple today released a new 1GB iPod Nano for $149. At around the same price-point of the 1GB iPod Shuffle, but with a color screen and great industrial design, does this signal the end of the iPod Shuffle? Why would anyone want to buy an iPod Shuffle when, for around the same price, you can get a 1GB Nano?

Update: The 512MB and 1GB iPod shuffle are now $69 and $99. Curious.