Apple continues to build on the iPod, trouncing competitors. The new model supports 150 hours of video on the 2.5-inch color display, and even thinner than earlier iPods [video clip from the announcement]. The new iPod battery has 20 hours of life, five hours more than previous models according to Apple's press materials. A 30GB model is $299 and a 60GB for $399. The version of iTunes also sells TV shows. For example, ABC shows offerings "Lost," "Desperate Housewives" and "That's So Raven" are available for $1.99 one day after airing, and take 10 to 20 minutes per episode to download an episode.
In terms of downsides, I see one major one: 320x240 would look ridiculously bad on my TV, and unlike the world of music where plenty of people can't tell the difference between lossy and lossless codecs, everyone will be able to see the difference here between standard definition and QVGA. I can't really see this being something I'm interested in until we cross beyond the SD barrier and up into HD, but then we're talking about 350MB or so for an hour of TV, and that's obviously not possible. Some middle ground is needed, but QVGA is just too poor for my taste. I can't see too many people abandoning BitTorrent for this.
The full-screen UI of Front Row is just begging to be hooked up to a TV. Begging. Now that there exists a "video iPod", the next new "Apple has to be working on this" mega-rumor is going to revolve around how Apple plans to bring this Front Row UI to your TV...PhotoBooth is not available for download; I wish it were available to anyone with an iSight. I hope it's not something they're reserving for new machines with built-in cameras.