Wow, this is a great time to be an Apple addict. I just joined the scene 6 months ago, and everything is starting to really hot up. I can't remember when there was so much interest in apple - OSX, iPods, G5 and Powerbook (regarded as probably the best notebook even in the PC world
).
I think Jobs will want to keep the iPod going. However, he knows from past experience that the current interest levels aren't gonna hold much longer - everyone who wants one has one, and Apple needs to keep selling.
I think price cuts right across the iPod range will be announced, and then hopefully the new 2gb and 4gb iPods.
The idea will be that you go into the store for a 4gb one, and then end up buying a 10gb one because you can nearly triple your capacity for 50% of the price, or something. I will be buying an iPod for around £100 (~$180 if you include VAT sales tax) with my leftover xmas cash and then hopefully they will announce a range of iTMS international expansions...
I think that Apple will therefore just keep the form factor exactly the same, and also the software the same. They might however stop it being used as a mobile HD and instead 'lock' it to music only.
Also, if Apple introduce a new product, a headless iMac would be perfect. Seriously, it would be the best thing Apple has ever done. Aim for an eMac style price point for it without the monitor, and then make sure that most people walk out the store with a nice profit making LCD monitor from Apple.
The only problem with this bloody keynote is that I'm bored completely with christmas now! I think Christmas has been rearranged for most people on this board.