Won't replace 5G iPod
My gut feeling is this will be a vPod... not meant to replace the 5G ipod, but truly a multimedia device. Likely larger (will have to be to include enough battery to run the thing for over 2 hours), and will work in harmony with televisions (more so than the current 5G iPod).
At the same time, I predict the announcement of the first feature-length movies available on the iTMS, obviously Pixar and Disney. Oh, and I think they will be in 480p widescreen format.
This is going to be huge, maybe not so much in hardware sales, but in movie sales / ? rentals.
Apple has shown the media content providers that downloadable video is feasible... they have shown the public they can provide a quality product at a good price... they now need us to accept a new paradigm in movie distribution outside of the DVD. They did it with the CD, and they will succeed in this new endeavor as well.
-alywa