i know this is a bit of nitpicking, but anything that's substantially more than a music player at a cost of added size, cost or reduced battery life than the ipod would have to open up its own niche market instead of being an ipod "challenger."
if this thing is $400, battery life of ~8 hours and had the capacity of 20 to 40 GB, then we have a challenger. but if this thing is $600 with a life of a few hours, it will not hit the same music fan market as the iPod - it will have to open up its own market of compact video player fans. (a market jobs seems to be quite skeptical of...)
so we'll see. it does look really cool, though.