In one of the videos they mentioned it as the "third generation." Seems like they're just asking for confusion though.

Seems to have worked ok with the iPod ("generation") and their PC line (generally referenced by year of refresh). A bit confusing now when they're doing the transition from "2" to numberless which the first one was but in the long run it will pay off. I suppose they'll just keep calling it "new" to differentiate.

Makes sense. It's not like we call the Macbook, Macbook Pro, or iPod by version numbers. Instead, at least browsing on Craiglist, it's usually by years (for laptops) and generations (for iPods)