What makes people think that Hulu is not going to evolve?
1) It lets you watch the largest collection of professionally made video (not just user content like You Tube)
2) It lets you stream great quality video, watch it full screen.
Now lets think for a moment on how you guys keep comparing Hulu to the iTunes Store. Wrong... the studios will answer downloadable content vs the iTMS separately and very shortly. Watch for that one.
What you should compare Hulu to is You Tube. Now lets think for a moment. What if Apple in their wisdom put a "Hulu" icon on the iPhone or iPod touch. How would that be any different than watching YouTube on your iPhone? Or if it's not Apple.. lets say it's on phones coming next year based on Google's Android platform.... or lots of other "mobile internet enabled platforms". Why not on media players??
Now in terms of the iTMS, there will be a studios answer to that question as well. You will be able to BUY content and keep it. You'll also be able to RENT it. It'll just be interesting how people react when there is choice.
Think about Amazon's MP3 Store... everyone started to find "faults" with DRM-free music they are serving up... people said AAC is better than MP3, no true platform integration, blah blah... guess what? It's a great product that sells DRM-free music to you that you can put on virtually any device. They picked MP3 because it works in MP3 enabled cars, iPods, Zunes, insert_mp3_player_name_here, etc.
The guy running Zulu, was cherry picked from Amazon... they know how to build web businesses. Apple will continue to make great products and offerings... but they too have got a lot of things wrong.. Iphone being locked, AT&T, pricing. .Mac still sucks, etc etc...
I love Apple and Macs and everything in between but people, just be a little more strategic in your thought about this. You say studios are greedy... well guess what? They've made a lot of money because maybe yes, they are greedy but they are also SMART.