Absolutely! 100%!!! If I want to listen to a podcast, why on earth should I use a program that is packed full of buttons and menus that have NOTHING to do with podcasts? It makes doing every function much worse. iTunes is an okay jack of all trades, but a master of none.
There is NO good reason for wholly separate activities to all be crammed into a single piece of software. If I want to listen to an MP3, why on earth should I have to hunt through menus and/or icons that perform functions for renting movies and syncing phone apps? It makes no sense and it makes the software worse at every single job it's in charge of.
The apps for entirely separate uses should be allowed to flourish in its own separate application. But at the same time the separate apps will naturally be functionally interoperable so that they work with each other seamlessly on the few occasions when it's required.
For example, Pages, Numbers, and Keynote are all separate apps because they're all mainly separate activities. This allows the apps to excel at the job they're designed to accomplish. Yet when you need the apps work with each other they do it super easily. This is exactly what makes sense for the entirely unrelated jobs that are currently all crammed into itunes.
Do you even listen to yourself?