A Tivo killer perhaps?
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Yes, you're right... Apple has some nerve to call a special press conference for something as lame as this, plus a new Mac mini with the intel chip.
For Steve to suggest his boombox can create huge soundstage and precise imaging and separation etc. does sound like Bose-speak
Certainly, most of us would rather connect our iPod to our stereos with a simple miniplug to RCA chord, and enjoy real stereo sound from our 2-channel amplifiers. However, real audiophiles are not ready to accept compressed digital files as their sole music source ! This, is really for those that need good background sound !
You can store your music with lossless compression on an iPod.
Someone needs to audition one of these and let us know how it sounds. Maybe it's good, for what it is.
When Steve Jobs was heading the original Macintosh development effort, he installed a system in the building where the team was working. My understanding is it was based around Acoustats. At some later point (early nineties), I am told that his personal system included Watt/Puppies. FWIW.