I like the iPOD idea... Apple yet again proves it can produce a best of breed product. $399 isn't so bad when you look at the price of the 1.8" harddrives. Once more HD's are utilised in products like this, their price (and iPOD's) will come down.
No Airport - so what. Compare 11Mbs to 400Mbs transfer rate and FireWire is the winner. Airport would suck the battery dry in no time or have a very limited range. I'd prefer the speed.
Add an OS and you'd have a funky PDA with loads of storage. iPDA anyone?
QT movie viewer ? Neat concept but the display wouln't be much better than the one on your DV camcorder or digicam.
What about PS2's? Hmmm.. with 10 million or so out there having a dvd-rom and an iLink port, just some software could allow ripping of your music CD's straight to the iPOD... for those without Mac's of course!
With PC data download capability I'd be using mine to ferry data between home and work.
I'm waiting on UK pricing, but I don't think it terrible. I remember the Soulmate MP3 player costing £499 when it came out and that puppy had 32Mb of memory and a parallel port interface.
Just my 2 cents worth!
Nick