As I was laying in bed lastnight listening to the new IPod Touch, I was browsing the internet and with the new integrated iTune, I went through spending like 20 bucks worth of music. Addictive!!!!
I'm sure he had the idea when thinking of an iTunes-using WiFi phone...just like tons of people in the forum, and tons of people at Apple...its a natural thought, nothing special...
The simple integration of the store is the genius put into the device, and part of that at least can be directly linked to Jobs