It's my hope that they market it as a mac, and not an ipod...you know, along the lines of the Mac nano. Does everyone remember Home-to-go? It was a feature of panther that was scrapped at the last minute. Think of plugging this baby into your mac, and it syncing with your home folder. You could go to any mac, plug it in, and be using your home folder, preferences..everything. Don't have a mac near by? that's okay, it's essentially a computer on it's own. basic functionality through itunes, iphoto, ical. it plays your videos. note that its not being marketed as a video ipod, much like the current 5g. its a mac, just with portable video abilities. text input is done through an on screen keyboard that appears when 4 fingers are present on the screen. here's a feature set that you will be seeing:
It's mac os Xi, not the ipod os, and it will feature for sure itunes and safari. it has wireless built in, and will have the ability to play music over an airport express. ichat, yes. apple will also be introducing their own ipod style boombox which will also have its own hard drive. the pictures you see are real. the form factor is bigger than a normal ipod with a 16:10 aspect screen, 640x pixels. about $500 bucks to start out. still unsure about isight...
oh, and did i mention widgets? there will be a new app out that will allow people to more easily develop their widgets (dashcode) and have them to go anywhere. new widgets, like those provided by google, will make this handheld very slick to use.
http://www.google.com/macwidgets/index.html