There are already lower-priced MP3 jukeboxes on the market that can basically do what the iPod can do and once these competitors produce a product that is at least as good (interface-wise), they will quickly eat Apple's lunch.
BTW, the iPod is saving Apple's bacon right now. The iPod now accounts for nearly 30% of Apple's revenue and they are not gaining any market share computer-wise. So if the iPod loses it's lustre, Apple is in deep trouble.
It seems Apple is imbedding itself into the entertainment biz as a hedge. The Ipod is the tip of the iceberg. Revenue streams now include legal downloads of songs. That gives Apple a Wal-Mart like front end power that the other computer makers don't have....yet.
If Apple keeps innovating, for example the new 30" cinema screen is awesome, they will be fine.
Once they stop wowing the consumer, they'll die. Don't bet on that happening..
Yep. I use a Sony minidisc player. It easily downloads serveral types of audio files through MS Media Player or through Sony's music software. iPod schmipod.
You can load any MP3 or AIFF you like into iTunes and onto the iPod, whether you legally copied it off a CD you own, or stole it on Kazaa.
You're only tied to AAC if you buy from the music store.
-ccm