This makes me really sad. Apple will still sell you an iPod Touch, which is basically a phoneless iPhone with a starting price of $199, but the days of Apple-branded MP3 players are pretty much done.
I own both the current (now discontinued) models and use them in my car. I still own a bunch of the older models, too, including an iPod Touch which is too old to upgrade past iOS 8. It's been my least favorite iPod.
I doubt the article's hypothesis about lack of Bluetooth support is accurate. The iPod nano does Bluetooth just fine. More likely, Apple just didn't want to keep financing development on the non-iOS software the cheaper iPods use, and iTunes support for same.
I guess I'll do my usual thing of keeping one of my Macs running an older version of iTunes until it burns out or something better comes along.
Meanwhile, I'm getting closer and closer to finally getting an iPhone. Since I last complained about it, my Android phone had a spell of a few weeks where it would spontaneously reboot with no warning, even in the middle of a phone call. Then when we were on vacation a couple of months ago, there was an episode where it told me I had no signal when I was separated from my family, and I ended up walking halfway across the theme park trying to reacquire signal until it occurred to me that the phone was being stupid and I should reboot it. Then a few weeks after that, it started mysteriously eating battery life until Robby reminded me, once again, to shut up and reboot.
At this point I'm tired of fighting with it. I don't expect to be entirely happy with an iPhone either, but at least it will have new and different problems that might be less frustrating. I've only had to reboot a misbehaving iPad two or three times in the six or seven years now that I've owned one. Not two or three times a year - two or three times ever.