Not too shabby:
4" screen
1080i output
Efficient power usage
8 GB expandable to 40 GB.
I'm not sure, but if "Plays for sure" gives it access to a lot of content, then this is a pretty decent contender.
There's plenty of room for apple to beat it though:
* 8 GB is pretty small for standard def video content and very small for HD content. And are there really 32 GB SD cards around? If so, how much do they cost???
* UI - if you don't have a good UI and sync system, the rest of it really doesn't matter. An iPod like interface and integration with iTunes is a huge plus for any real contender.
* Where is this 1080i content coming from? (It may exist, but I don't follow plays-for-sure content providers very closely). If you only have 480p content, it really doesn't matter if you can output at 720i/p 1080i/p.