This could be big, not likely... but it has potential.
If Apple really wanted this to be the year of HD... (my list in cronological order)
1. Release Video ipods and Movie Store next week. The iPods will play h.264 and everyone will be content at the moment. Movies are $12.99-19.99 for HD quality, and they scale well to play on your iPod. They also will be burnable to blu-ray or HD-DVD when (and if) they come out.
2. In Paris they release a Mac Mini capable of driving an HD movie, they shift so their entire line of products can play HD content and throw it on a HDTV.
3. They release a new app that controls all the iApps, mainly iPhoto and iTunes (or iMedia). You use this app when you want to watch a movie, browse your music, browse your photos. It's a simple small footprint app that looks great on an HDTV or regular TV, that has an even simpler, less cluttered view of all your media (movies, pictures, music). You open it, it auto goes fullscreen no dock, no apple menu, no hard drive icon, just your media.
Here is the kicker. Blu-ray and HD-DVD are not getting anywhere any time soon. Apple drops in and says, "all you need is a $500 mac, a broadband connection, and an HDTV and you can be watching hdtv movies TODAY." For less money that if you were to go buy a dvd. How many consumers would jump on that because they are tired of waiting around for this format war to end when they have had their HDTVs sitting around getting no real use?
Why would i go to a store to buy a movie for 19.99 when i could buy have an HD quality one for 12.99-19.99, download in the privacy of my own home (save on gas), and without much hassle is compatible with my iPod and i can take it with me and not worry about carrying all my dvds. WHO IN THEIR RIGHT MIND WOULD WAIT FOR THE FORMAT WARS WHEN THEY CAN HAVE HD MOVIES RIGHT NOW!?!?
Apple could single handedly kill the idea of physical DVD media... all because of this little anouncement about a video ipod.