Could it be? Is iTools the premise for the user interface of an Apple Internet Appliance?
It would make total sense. Apple sells an internet appliance that has a display, 2 USB ports, and an internet connection (dsl or cable). No hard disk. No cd/dvd drive. Email is via mac.com (and your isp, which you will need to connect to the 'net), KidSafe keeps your kids away from questionable sites, iDisk stores all your digital images and web pages (which are transfered via drag-and-drop from your USB digital camera) and iRevew and iCard round out the experience.
Now THAT is a, kick-ass, industry leading, Apple-style internet strategy. And, it fits.
Consider a couple of comments that Steve has made about WebTV and why it is not successful: 1) no disk space and 2) 'social aspect'. Obviously, disk space is addressed via iDisk, which allows you to store your documents, digital images and other materials that you would like to publish on the web (Quartz comes in nicely here, as does the new MacOS X finder interface, don't they!), and the device is still 'personal'. Unlike WebTV, which is centered around the not very popular 'family computing' model, the Apple Internet Appliance would still be a personal online experience.
Need to print, no problem. Just connect your printer to the USB port, and the driver will be downloaded over the internet and installed. The same will hold true for every USB device.
PS: And if you need to produce digital media, buy an iMac.
Doesn't that put all of Apple's work in a much different, and more logical perspective? Of course, no one knows what Steve has in mind, but what I have proposed certainly makes a great deal of sense, and would fit with much of what Steve has said and presented.