Does that mean video out is being added to the iPhone via a software update? If it's been available on the iPhone before, I've never heard of it. Then again, the composite video cable is listed as compatible with iPod Video, so this ability has been around at least since earlier this year, even if the quality isn't very good.
But the iPod Touch's bigger screen does mean a better resolution. Are you willing to spend $50 for the cable just to watch your iPod on the big screen? Might come in handy for sales presentations and the like, but there are so many other ways to stream things to your TV at home that it doesn't seem like that big a draw to me.
Note: The picture is actually the Viewsonic Viewdock, not the AV cable. But it does pretty much the same thing.
Thanks to everyone who sent this in!