What if the iPod was capable of more than just being an MP3 player. After all, it can be used as an external FireWire drive to hold “various kinds of files.” Who is to say that Apple isn’t developing “QuickTime for iPod,” etc?
I don’t know all the specs, but the LCD display looks like it would have enough resolution to watch b&w movies, as well as view JPEGs. etc. Then, it truly would fit into the whole “digital hub” lifestyle that Steve Jobs is promoting.
The name “iPod” is rather general. Notice how its name is not “music specific.” I know it’s only a thought, maybe even wishful thinking…