I don't understand what you're arguing. You're saying that because some kids watch Twilight, or whatever it is, on their iPod that everyone is going to start watching movies on a 3.5in screen instead of a 50in or 60in TV?
It sounds like you're arguing that iPhones/iPods are going to replace the television, which makes no sense.
I'm 23 and I've never watched a movie on my iPhone, if it makes a difference.
What i'm saying is that people are not going to want physical media one day and BTW my nephew is a Dustin hoffman and Humprey bogart fan. Not every teenager is a slave to trends
This whole argument reminds of how old people use to argue about Radio and how nothing would replace it and stuff like that.