I'd like a larger format iPod Touch (say 6-8 inches) that I could use specifically for controlling my whole house audio system (via Remote Buddy and Signal). I currently use my iPod Touch for that function, but frankly, I'd prefer a larger less portable device in favor of easy viewing and access, which a larger screen would provide in spades. It'd also make for a much more pleasant couch surfing device. It'd also have room for a huge battery, perhaps even a removable one so a charge would last a LOT longer. WiFi eats up my Touch's battery so fast it's ridiculous. I had to get a wall charger and strip for my stand between my recliners so I could leave the iPod Touch wired at all times so it's doesn't eat the battery up.
When you figure that other companies have $400+ remote controls out there, it doesn't seem so absurd to me, although it'd be nice if Apple directly put some remote functionality into the iPod Touch and iPhone to control things like AppleTV and iTunes servers directly. The addition of an IR port would be nice as well and could enable traditional remote control functionality as well (you could have on-screen templates to match any remote out there). I'd actually prefer a WiFi receiver that transmits the IR codes, though as I could place that in a permanent fixed position and then the iPod Touch wouldn't have to be pointed in any given direction to access it. That could be done NOW with a 3rd party addition, I think, although it'd work 10x better with a direct application instead of having to use a server like I do now for Remote Buddy, etc.
In any case, with the coming 3rd party additions, it would definitely be a winner here either way, even with the current form factor. I'm hoping to see direct Airtunes control from the iPod Touch (i.e. be able to play my iPod's own songs directly to Airtunes devices) along with direct applications for Remote Buddy and/or Signal, which would greatly improve the interface speed and functionality (wouldn't have to download/buffer the library list, etc.).