I think many of you are missing the main point....
With PortalPlayer's announcement, it is very likely they are losing 0% of Apple's business.
PortalPlayer is coming out with a SUCCESSOR to their existing media chip... this successor probably has additional features, tailored for additional media capabilities. It is VERY possible that this chip was specifically developed for APPLE for use in its high-end ipod line (read: iPod video). The high-end FLASH ipods, such as the nano, won't use this SUCCESSOR because they don't need the new features from the new chip.... so the FLASH ipods could continue using PortalPlayers current chips.