Apple should really do a 25th anniversary edition iPod with a scroll wheel, modernized battery, and modernized storage.
Do some nice nostalgia marketing for the zoomers and people that had one back in the day and it would sell like hotcakes.
That would at the very least have to have Bluetooth (and at that point they might as well add wifi, since that is more or less the same modem).
That would make a damn nice 149$ apple music machine, slap some stripped down firmware on it, so they can argue why it only supports apple music streaming.
Not sure it'd work without also bringing back the old iTunes... and that would probably be problematic business wise.
Best they can do is larger but thinner device, with large extrusion, and obviously 8GB of RAM.
Apple is in the ad and subscription business now, so either it'll sell for 899, it'll be covered in add, or it won't sell at all.
They'd sell hundreds of units! Thousands even.
Although I can see them selling an original 2007 iPhone Anniversary Edition, fully upgraded under the hood and with a modern screen/camera/wifi/5G
But I'm only saying that because I don't like giant phones: I'm in the 2% minority.