Seriously, after iPod Photo, who didn't see this coming?
With support for up to 150 hours(4) of video and a 2.5-inch color display, the new iPod lets you take music videos and TV shows on the road.
For the slightly more thrifty, the iPod nano is a lot cuter but doesn't (yet) play videos, and the iPod Shuffle is necessarily music-only.
So now the iPod's a complete media device. Apparently, the click-wheel and the minimalist design in general limits the kinds of features that could feasibly be added, but I'm thinking a video camera, a voice recorder, some sort of simple iPod-to-iPod connectivity, and (dare I say it?) video conferencing could be sqeezed into that small frame somehow, or maybe as an all-in-one add-on. Am I asking for too much? I don't think so. Apple (as well as Google) has shown how deceptively feature-rich a simple-interface product could be. Let's just hope they don't delve into portable 3D-gaming. :-P
Update: It seems that the new iPod does have voice-recording. I found that fact hidden deep in the iPod specs page. Nice.