Here's something I posted about a month ago on a different "Video iPod" thread... what do you think?
Give me an iPod that I can use as a portable TiVo to record and playback video through a television or computer. It would have a screen for small-scale playback, RCA inputs and outputs, and a dock with the cable tuner (they're bulky) so I can do home DVR, programmable via bluetooth from my laptop, or with a minimalist built-in interface. Throw in Airport Extreme for the base station and then I can use it from anywhere in my house to stream recorded shows.
This is the answer to the "multimedia PC" trend that people are mistakenly buying into. Keep it as a discrete system so I don't have to hijack my computer just to record video, and let me pull video files off to archive, view, or burn them, giving me complete control. Then, let me rip DVDs in Mpeg4 format to put on it so I can watch at my leisure or plug it into a hotel TV or my grandparent's. I don't care if there is DRM on a ripped DVD, I don't plan to distribute them to anyone else or modify them in any way. I don't want to download movies because my DSL is slow and I prefer to buy them on disc anyway, but if I can rip it, then I have the best of both worlds.
That's what I want. It's an iVid designed to manage my movies and tv shows the way the iPod and iTunes manage my music, with the ability to play them on almost any TV or computer.