More accurately, I want an audio iPod that, oh by the way, will let me watch video occasionally. I'd pay an extra $75-$100 for this feature, but I'd still mainly use the iPod for music.

Where would the video come from? Well, Dr. No was on TV over the weekend and my TiVo recorded it. I didn't have time to watch it, but I've got a plane flight coming up. So TiVo --> iPod would be one place. (Maybe Apple could convince a TiVo licensee to create a TiVo box with an iPod dock built in.)

Another source would be those TiVo-like products for the Mac.

And maybe Apple would be able to convince the DVD lawyers to allow a DVD to be copied, in low resolution, to up to three iPods (or even one iPod).

Finally, how would the hardware have to change? The screen would have to be bigger and of course in color. Perhaps it could extend like that new Palm, or perhaps the controls could fold over the screen like the Sony Ericcson P800. And the battery would have to last for at least 6 hours of video playback. Could they do all of this for an extra $100? I don't know...