Gain ground how?
I don't think any company's going to be able to look at what Apple did this Tuesday, say "Gee, let's do that with our MP3 player", incorporate it into their products and get it on store shelves anytime this year.
It'd take too long to design, test, source parts (how many touchscreen manufacturers are there?), and get ready for mass assembly, wouldn't it?
Not to mention getting around Apple's patents.
I agree that a true video iPod and the iPhone won't compete one-vs.-one, but they're still going to be competing for consumer dollars. I would love it if Apple released the video iPod in the next few months, but I just don't see it happening until later on in the year. Maybe not even until MWSF '08.