Baby Steps, Folks!
I don't mean to sound rude, but I think many people in this discussion are "putting the cart before the horse", so to speak, when it comes to the "video ipod" or whatever it's going to be called. I think many people are expecting something before it's feasible/available. Let me explain (and for the record, I'm by no means a video expert at all).
My own personal belief is that if Apple releases a vpod, it won't be so much for downloading movies from an iTunes-like store (I think there are too many issues with this for them to make that leap yet), but more so for providing a capability for vpod owners to carry both their music collections AND a few of their own movies/TV shows that have been ripped from DVD/Tivo to a PC/Mac hard drive. I think we need to think of this in terms of "evolutionary acquisition", i.e. vpod version 1, version 2, etc. Just think of how Apple has grown the iPod line as technology has matured/evolved over the last 4 years. I think the vpod will be similar. First introduce something that allows owners to carry both music and movies/TV programming. And yes, I know that there are already devices that do this, but there were also other devices that allowed users to carry MP3 collections prior to the introduction of the iPod. But Apple came along w/the iPod and blew everything else out of the water for several reasons. Why can't they do the same w/a video player? I'm not buying the argument that it would be mostly for downloading & watching music videos - who sits down and watches 2 hours of music videos, anyway (disclaimer: I'm NOT 13 years old, so maybe there's something about the Echo Boomers I'm not aware of!!)
Then the next logical step (a la iTunes introduction) would be to introduce a video store where you can download & buy feature films, episodes of TV shows (like you can buy an entire season of a TV Show at Best Buy on DVD, etc), as well as introducing the next evolution of technology for video devices...
Well I'm done my rant! Since this makes entirely too much sense to me, I'm sure it's about as plausible as pigs flying!