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It's the smart move right now. What makes it the smart move is that people have been clamoring for a video iPod for the longest time, and it's always smart to give the people what they want. Especially when the people are banging on your doors with fistfulls of money. (The people can get fidgety when you continue to not give them what they want and they will look elsewhere for their needs. See PalmOne.)
We all know that Apple needs outside-the-box comsumer electronics markets to dominate to boost their computer hardware sales and, having conquered the music player market, the next logical step would be to establish and corner the portable video player market. The market is ripe for a product that will replace the portable DVD player, and Apple can be right there with the killer-app as well as the perfect and complimentary computer purchase. Not to mention the perfect and complimentary digital distribution method (iTunes Music Store.)
It's just a matter of time. Steve Jobs earlier machinations were meant to dissuade Apple's competitors (who are clearly looking for any sign or move to copy, sorely lacking their own design initiative.) I look forward to the future of this exciting tech., especially from the eyes of the lay-person who is being introduced to this tech. for the first time (people in my neighborhood/family...) as well as from the jaded geeky perspective.
POL9A
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