NON-photo usage
Think of all the fun NON-photo uses you could have for image display.
* I'll put my design portfolio on my iPod--you never know when I might wish to show it, and now I will be able to carry my laptop "just in case" a lot less.
* Presentations from Keynote/PowerPoint etc. can be saved as still images and made portable too.
* Maps. I'll have mini-maps of the trails I hike/bike, for sure.
* Album art playing to TV while your music goes.
* Take some Visualizer screenshots and shuffle them with transitions enabled. Something to look at while you listen
* Make some "minified" fake screenshots of OS X, Safari, UT 2004, MS Word, Photoshop, GPS display, satellite TV menu, or whatever, and impress people who don't know any better
* And I HOPE Notes Reader's hypertext format can link to images the way it can link to audio. Interactive multimedia of all kinds! Educational, promotisonal... even Myst-like "multiple choice" gaming on your iPod!