The argument against portable video players goes something like this, the average person in his or her average day more frequently has the opportunity to passively listen to music while getting from point A to point B or exercising, and when he or she wishes to be proactively engaged by video content, they'll want to watch it on a bigger screen. This is true - but there is an appeal in being able to get your personal video jukebox from Point A to Point B and watch it on a screen other than yours.

Products like the new Slingbox (see post below), MP3/Movie players by Archoswith TiVo functionality, and laptops with TV-out capabilities satisfy
the consumer desire to bring their visual media wherever they go, even
if they won't engage the content on the way. From the ipod product page:

"Add an optional audio cable to play music from the iPod to
your home stereo or use an optional S-video cable with iPod to play VJ
on your TV. ."

Where Apple says "your" in the previous quote, they should say "any". To market the 5G iPod as an "iPod that does video" is a smart marketing strategy, Apple should consider tweaking their taglne slightly to, "This iPod transports video." IMO, Apple's iTunes upgrade is their most significant innovation, as a legal source for video downloads which ultimately aims to take the form of an on-demand channel that consists of all audio-visual entertainment.

Read an MSNBC editorial that cautiously embraces the new video iPod.