Possible Pixlet applications
I think Pixlet will be part of something like an iPod for video. The better than DVD resolution lends itself well to widescreen displays like the Apple Displays as well as plasma screens, LCD TVs, etc. It would also be a good format for recording digital television but there would surely be restrictions to doing that.
Maybe there will be a new tape format to support it, much like DV25 has MiniDV tapes. Apple could design the tape mechanism as an external peripheral that is FireWire native (unlike all the external hard-drives of today). The tapes could be used for backup of data as well. Speed would be faster than MiniDV but slower than a disc.