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I'd definitely be interested to see what they could come up with. I've been debating between the Sony 505 and the Kindle as I want something with an attached store for convenience. But I decided to wait as the Sony store has less selection and higher prices and no wireless access, but the Kindle 2 is too expensive and the design is ugly compared to the Sony.
iTunes is great for music and the design of their devices is usually great so maybe their device (if one really comes out) could be the best of both worlds in terms of design, functionality and selection in their store.
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