I think a lot of people are setting themselves up to be disappointed.
People have been talking about the iPhone for literally years now. And you never know - it might happen. But I think it's more likely that iPods will keep on being iPods. This is the product that hasn't ever added something as simple as an FM tuner, and the reason that they haven't is that it's more parts, more menu items, higher cost and something that only a very few feature addicts care about. Everyone and there uncle already has a cell phone, and a significant percentage of people already have an iPod - and most of them aren't about to throw away hundreds of dollars worth of techie toys that work perfectly to spend hundreds more on something that does the exact same things. Think back to the iPod Photos. Neat idea, a whole new major feature...and the only one that sold well was the one with the larger hard drive. Pretty much everyone thought it was cool, and then ignored it and bought the less expensive monochrome iPod (unless they happened to have 60 GBs of music). Maybe if the iPod was able to add cell support cheaply enough that it was a standard feature across the entire line (like the eventual iPod with Colour Screen), then it would sell - but that's a big engineering and manufacturing challenge for a feature not everyone's going to use (unlike colour album art, which you can't really help but enjoy). Hell, the amount of negotiation it would take to get iPhones working on different networks all around the world (a bit more of a localization issue than just translation and a standard USB interface) would be a nightmare, and probably be better spent getting more music, tv shows and movies.
And a "real" video iPod? I'm content with the current "fake" iPod with Video. Widescreen, larger screen, touch screen, wireless...it's all going to cost money and battery life. If you really want a "real" video iPod, get a Zune when it comes out. Microsoft, sweethearts that they are, will sell it to you at a loss because they don't have to worry about silly and mundane things like profit. But you can't plug it in to your Mac or import your iTMS music to it. Eventually, Apple will figure out a way to improve the iPod and still make a profit, and at that point, they'll release the - say it with me - the iPod. Until then, you can have your choice of the iPod, or not-an-iPod.
Also, if Steve Jobs were to retire, all he'd do all day would be hang out at Apple and give passionate speeches about Apple products. Basically, exactly what he does now.
