Why would they do a SD version? I'm no developer but hypothetically it would make more sense to just allow graphics adjustments to cater to lower end iDevices.
Ipod Touch 5 is supported! Just not the iPod4 because it has only 256mb ram, there is only chance for that if the the unreal engine gets a improvement. But there is also the possibility of a SD version of the game that has then different graphics but it depends on how big the interest is in Last Knight overall. Because who knows when unreal engine will have improvements
Honestly I'm no fan of UE3, give me Unity any day. More efficient, very versatile and is currently powering the most impressive games graphically in the AppStore. UE3 tends to chug on lower spec devices and just isn't all the impressive anymore. Hell, look at Forgotten Memories or Ravensword 2. Both are powered by Unity (FM's engine is a heavily, heavily modified version) and FM looks like an AAA console title at surpasses 60FPS on the device's internal loop (but max refresh rate is 60) on A6 devices. That's amazing and I have yet to see an UE3 title do so. The reason I bring all this up is because I've read about Last Knight not reaching a stable framerate on A6 devices with shadows on, and that's unacceptable to me.
Doesn't personally bother me i'm happy with how it is. But in the interests of other people on lower end devices being able to try this then yes, i'd like other people to enjoy it too