Note quite true, did you not know that you can import AVI's into iTunes. allthough you need QuickTime Pro & the necessary codecs, all you have to do is open your AVI in QuickTime Pro and go to "Save As" chose "self-contained movie" this will put a QuickTime (.mov) rapper around the AVI so iTunes can see it. then just add as a normal mov file. and your done.
Perhaps, but I DON'T have to do this for any of the 10-or-so direct competitors that I can buy on the shelf today at Fry's.
The only advantage this has is being able to play iTunes-protected content, and I've decided that until I can burn those to DVD, I will not be purchasing new videos (I had been buying a TON of TV episodes). Guess I'll just stick with lower-res Tivo...