Apple is to allow you to download your photos straight from your digital camera to your iPod Photo, using the the iPod Camera Connector, due out in late March. CNET:
The camera connector, Joswiak said, is a small white plastic device, similar in appearance to a small docking station, that has a cable for connecting to the iPod and a USB port for connecting to a camera. It will work with both the new iPod Photos and with earlier photo player models, Joswiak said.
Pictures loaded onto an iPod directly will be able to display immediately on the iPod.
Oh, and the iPod Photos are now cheaper.