iPod Video, Future iPods?
So now that they've announced it, we get to answer the question: Do people really want a mobile video device?
Microsoft tried with their portable media centers; cell phone companies have been trying in various ways, but none have really caught on.
The same was true with MP3 players before the iPod: There were already entries in the market, with none of them doing particularly well, when the iPod came along. Suddenly the market exploded. Many reasons have been proposed for this, but whatever the reason, it took an iPod to open up the MP3 market.
Will it happen in the video market? My prediction is "no", but I'll give this one some time.
The other market that Apple could take the iPod into, although it would need somewhat different hardware, would be books. Would a iPod Paper that gave you an iTunes for books and let you read them anywhere also work where others have failed?