FWIW, Apple does have a 256GB iPod Touch in its current product line. Perhaps I will upgrade...
iPod touch - Official Apple Support
Learn how to set up and use your iPod touch. Find all the topics, resources, and contact options you need for your iPod touch.www.apple.com
Yeah. I mean, that's a bit overpowered and overpriced. I don't really need a media player to able to do Facetime. I suppose someone likes that functionality - pretty much a smartphone, without the phone.