Today Apple introduced iTunes 4.9 and the new iPod lineup discarding the non-color versions of the full sized iPod. It is unlikely that they will introduce new iPods next week (since they would have just waited and introduced the new lineup then instead of today). This does make you wonder what next week’s announcement might be. The only other suggestion I’ve heard is some kind of an alliance with Sirus or XM, but I honestly I don’t think that’s something Apple is interested in doing.
It does make me think, however, now that all of Apple’s higher end iPods support color, what’s to keep them from playing video as well? Not that I think the iPod should be a video machine, it would be a nice extra.
On another note, Sony is really pushing the PSP as a video playback device with their UMD format. It’s gaining a little bit of power (a number of movies are available, with more on their way), however I don’t really think that it will ever become any kind of a standard (the UMD movies are not DVD quality, and they are more expensive than DVDs).
I reiterate my opinion that now is the time to strike. Even if Apple can only align with a few key production houses (like Disney and Fox) with a few hundred films in HD at something like a $9.99 price point I think they could have a winner.