It's an interesting concept. However, most people don't have video cameras. So how do you get interesting-to-watch movies in there?
The only way it could trigger interest is if it allowed you to record shows DIRECTLY from your TV and allowed you to play them back later on that device.
As other readers pointed out above, there is little interest in paying for a new device just for the playback of Quick-time movies you would download from the Internet or even make in iMovie: A $999 iBook would allow you to do that just fine, as is, on a 13" screen.
So really, the only way is if this new Video iPod sits next to your TV, allows you to record a show to MPEG4 via QuickTime with the push of a button, then can be un-hooked and you can play it back at your leisure while going to work.
imagine the uses: You record CNN in the morning, while taking care of the kids, and you watch it in the Subway on your way to work ...
Obviously you can then hook it up to your Mac and it would sync up and put your Movies on your Mac and let you choose which ones you want to store.
The playback capability would have to be at least a couple of hours so that you can see a full-movie...
Because it somewhat replaces a movie-recording device such as a VCR or a TiVo, it would be worth quite something.
The devide could even be in 2 pieces: the one that sits next to your TV and allows recording, and the storage and mobile section, which can be taken on the road and hooked to your Mac.
That would make a difference and be worth a few $$$...
Any thoughts?