FaceTime is only a video chat service (for now) by dialing into an e-mail address or phone number. iChat is a chat service (like AOL Instant Messenger) that has screen sharing abilities, video chat and audio, sharing files and other things. What I've noticed is more and more people have stopped using iChat to use Facebook chat instead and the only time people use video feed's is by FaceTime or Skype. So is iChat obsolete? Will FaceTime ever take over iChat with the full features? I know they're two different things but I like the video capabilities of iChat with adding a roller coaster background, etc.