Wheels Coming Off iPod Nanos?

More grist for the rumor mill frantically churning in advance of Apple’s Sept. 1 special event. Kaufman Bros. analyst Shaw Wu issued a note this morning speculating that Apple (AAPL) plans to uncrate a “significant redesign” of the iPod nano, one that does away entirely with the click wheel that’s been a feature of the device since its debut.

“We frankly are not sure if this model will see the light of day,” said Wu. “But this would be a big departure from the design it has had since 2005 when it replaced the iPod mini. From our take, a radical refresh may make sense to jumpstart what was once its top-selling iPod.”

If Apple were to remove the click wheel from the nano, what would it replace it with? Perhaps those mini-touchscreens we heard about in July….