cool movie... in fact, VERY slick, indeed...
(i assume they couldn't show "jack" because they would have had to pay if they went that far.)
that said, it won't really be an "iPod." it will have to be a different machine for a different market.
i think the point that's been proven over and over in the market is that "audio is not poor man's video." portable music players have always been popular (transistor radio, walkman, discman and now iPod) compared to anything video. (portable TV, portable DVD player...)
if done correctly, i believe there will be a market for portable video players in the future - but it will take something more innovative than just adding video features to an audio player... obviously, if i knew how to do that, i'd be doing it myself. but since i'm not very innovative, i'll leave that part up to apple to surprise us... perhaps with the gen 4 "iPod"?