I don't watch live TV anymore. It's mainly because I don't know when I'll be in front of my TV and so I became a big fan of TIVO. Programming TIVO sucks, but the season pass is what I loved. Then I even stopped watching TIVO, because I hated having to wait a week for every new episode.
Then I started to download TV shows in bulk. (Let me know if you want to know where and how I get all of these) Having video content in digital files is a great concept, because you can watch it anywhere and there are many device options available today. When I'm at home I watch them on my big screen TV using a product called iCube Play@TV NMP-4000, which streams any video file from a PC. When I'm on the road (or sitting in the toilet), I watch them on my i-Station, which is by far the best portable video player in the market. And when I'm at work (shhhh, don't tell anyone), I can watch them on my computer!
So, I already have a portable solution and why would I want the new iPod? I know that many people don't like the idea of watching a video on a small (2.5") screen. I also know that many people don't think they'll buy any music videos. They are both fair arguments. If I'm looking for a video player, I wouldn't buy an iPod, but if I'm buying an mp3 player with video capability, this could be a great solution.
Audio and video fundamentally are two different animals. For audio device, smaller is better but for video people want bigger screen. It is essentially difficult, if not impossible, to come up with a product that is perfect for both applications. Thus, I think there will be two markets for audio/video convergence. One with more focus on audio and one with more focus on video.
My pmp (i-station) is a video player with audio capability. It is great for long trips, but it's too bulky for everyday use. On the other hand, just like the Archos gmini 400, iPod can be a great audio player with video capability. I will carry it around everyday, wherever I go. When I'm standing in line or sitting on a bus, I will always have the option to watch the last episode of 'Lost'.
When I first tried gmini, I was concerned about the screen size (which is the same as iPod). But after using it for a while, I realized that if I watch it at about 12" distance, it is effectively the same size as watching a 40" TV from 10 feet away! This is something that you will have to try to believe, I guess.
So, I'm planning to buy the new iPod. It will finally complete my video-everywhere needs!