Disagree strongly. There are PLENTY of times when people are doing things that go perfectly with the video iPod (airplane travel, roadtrips, commuting via bus or carpool, just to name a few). Just because it doesn't fit into your lifestyle doesn't mean it won't be the greatest thing since sliced bread to a whole lot of others. When you miss a show you want to see (I still do occassionally, even with a DVR) it is AWESOME to be able to get it quick and easy on iTunes, at a pretty dang good quality.
Also, have you TRIED watching TV on an iPod. Even the current screen at 320x480 looks great with as bright and high resolution (per inch) as they've made the current iPod. If Apple really does go wide screen as so many are hoping, the picture may look nicer than a big screen TV (since any screen gets smaller the further you get from it).