I've said it before, and I'll say it again.
A device (be it Apple or otherwise) needs to exist which combines the pocket luggage.
I carry an iPod, a Palm, a digital camera, and a cell phone. This is too much. Others carry the above, plus a pager (or even two).
The technologies in these items are too closely related not to be combined.
The iPod has a 20gb drive as of Aug. 1. This is enough space to run 15GB of music, 4GB of photos, and 1 GB of PDA OS & soft telephony (um, 3G. Okay, install the 3G software, Pager? Okay, install the pager software, You need GPS? Here's the package. IM? Web? Mail?...etc.).
You won't complain about outdated phones, because you'll dl the new package to take advantage. It can work with any network which develops a software package.
Tie in a nice, but not pro level, ccd via a card slot, and you've got a mid-range camera. GPS may require its own hardware as well. You get the idea...
Danger is close (I've used their device), but lack in the storage area.
Treo/Samsung/etc have integrated PDA/Phone.
iPod is PDA sans input.
It doesn't take rocket science to KNOW that this product will exist, but the question is who will make it, and when will it arrive.
To succeed it needs to be:
a) functional across all target arenas
b) elegant enough to justify a $5-600 price
c) robust enough to make redundant its competition
Without speculating on Apple's foray into this market, I can tell you that they have the IP & R & D to do it better than Danger. Previous to the iPod, no-one thought Apple was going to target the already saturated MP3 market. I would go so far as to say that Apple spends more on R & D annually than Danger has been given by VCs.
BTW, the ceo of Danger is a former Apple employee (Andy Rubin), and Woz does sit on their board.
The usual suspects (eye, Alpha...) will argue against this, or at least against it being made by Apple, but there are many companies who realize that people will pay to integrate their 'devices'. While it will not be the best at all intended tasks, it could fill a major void for those who need a good 'everything' device. No-one wants to be walking down the street with a tool belt full of pack 'o smokes size gadgets when one will do.
Save for policemen, and über geek elitists...