As you point out, the current iPod isn't a "pure" machine either. Apple have realised that they have to continually offer new things and more functionality to continue to sell and tempt existing customers to upgrade. As a music player my 4G iPod is more than sufficient: It has a nice enough size, decent enough battery life, 40Gb of space and music will not sound any better no matter how bigger the screen is. If the iPod is only to be a "pure" walkman then there is no reason for me to ever buy a new iPod unless it breaks, which is bad for Apple. Apple realise this, and validate my point by adding extra features to the iPod like photo and video support. Things like a web browser, IM etc are also just natural evolutions of the device.
Actually that's exactly what's happening. TV's now are having HDD's built in, PC's are having media centre's built in. Here in the UK, with the BBC, the difference between TV and computer are being blurred. A few minutes ago I watched a TV show on this computer steamed from the BBC.
Well all the things I'm proposing are software, not hardware, features. So they should have minimal effect on battery life. The new iPod will have a large screen and WiFi regardless of whether it can surf the net/IM/email, and those are the battery draining features.
But that is exactly what Apple are doing: When the ipod launched it was nothing more than an MP3 player yet the current iPods are evolving into the "be-all-and-end-all" device I'm suggesting: They play games, they have a calander, they show notes, they play videos, they display photos. Has Apple lost market share by offering these things? Or would they have lost market share if they had not offered them?
And precisely what other Apple product sales would a MYLO iPod cannibalise? What competing product does Apple offer?
Like I said in my previous post, the mobile phone market (and what Apple have done with added functionality to the iPod) shows the exact opposite trend. I'd much rather have a MYLO iPod than cart a laptop and an iPod around with me EVERYWHERE I go.
Women are always right. Or so my mother tells me...
I don't believe that the next iPod will be a MYLO-esque device, but eventually it will offer all that functionality.