My first thought was "yep, that's what Page 2 is for!"
But it would combine several rumors nicely into one. 2 GB Shuffle? Smaller/smaller-screen flash Minis?
Maybe the Mini isn't really changing (or is just getting a color screen)... and 2GB in a Shuffle always sounded odd to me. Instead, they may simply ADD a new model between the Shuffle and Mini.
I could believe it. Especially since TS's all-flash Mini lineup includes a 6GB model. That size makes more sense with HD than flash, to me. Even if Apple gets cheap 4GB flash chips in bulk, that only gives you 4 and 8 GB models.
So I think it highly likely that TS's expectations go too far, and HD Minis will remain.
But something smaller than the Mini, with a color screen WOULD be cool. (But photos on a 2GB device? Oh, well, the color UI alone would be worth having a color screen.)