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Gizmodo posted a short item today suggesting that an iPod firmware update is coming soon which would enable the “Cover Flow” view of album art, similar to the feature currently in iTunes. No word on whether the update will only apply to the 5th Gen iPod with video, or if the current nanos will also get this feature. Gizmodo also says that no iPod hardware updates are expected before the release of Apple’s upcoming iPhone (June). A touch-screen version of Cover Flow was previewed on the iPhone.

Here’s video that claims to show Cover Flow on a 5G iPod.

As rumors go, this one seems pretty credible. There’s probably been a lull in iPod sales as people wait for the iPhone (and subsequent iPod updates), so Apple may be trying to boost sales by adding features in the meantime. I rarely use the Cover Flow view in iTunes, so I’m not sure how helpful it will be for me on the iPod. Still, new features are always welcome.

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