Did I call that one or what? iTunes 4.8 now supports video. You can buy music videos and such stuff now on the iTunes Music Store. Mark my words: video playback support will soon follow on iPods. Probably the iPod Video or something like that. Perhaps the iPod Photo will get a firmware upgrade to allow video playback to an external monitor or to the internal screen & headphone jack.
The future is bright for digital filmmakers/content providers.