This sounds interesting. The problem with stuff Apple has done in the past, like Pippin and the Newton is that the products have been a bit ahead of their time and the market wasn't quite ready for them. Now however, with iTMS, iPod and the crossover between the PC and home entertainment, it looks like iBox could work.
Also, don't want to go too off topic but has there been any more news about the small/cheap iPod? There were rumours about a cut down 2GB or so version but the reaction didn't seem to positive. However, one of my friends told me he had heard that it was definitely going ahead and would be released in the spring for about £65/$100. Supposedly there had been some mention of it by Steve himself. Can anyone confirm this or am I just dragging up dead rumours?