It could pay off in the long term, people want the iPod and start with the cheaper flash based ones. As their music collection grows, hopefuly through the iTMS, they will upgrade to the 20+GB version. It will also create even more brand awareness and exposure for apple and a little bit of publicity is never a bad thing. As people become more familiar with what the Apple name has to offer they will be more inclined to switch if they have not already done so.
jared_kipe said:A flash based ipod would probably hamper sales of normal ipods a bit.... Can we say flash based Powermac?!?!... ?Flash Powerbook G5?