We really don't want to believe him, but in yesterday's press conference for the first anniversary of the iTunes Music Store Steve Jobs insisted that there isn't a video iPod in the works:
Mr. Jobs addressed the issue of video on iPods when asked by Mike Wendland of the Detroit Free Press whether or not Apple was looking to add features to the iPod. "We want it to make toast," replied Mr. Jobs. "We're toying with refrigeration, too." While intended to get a laugh, which it did, Mr. Jobs also offered a more substantive answer as to why Apple had heretofore not added too many features to the iPod. "One of the things we say around Apple, and I paraphrase Bill Clinton from the 1992 presidential race, is 'It's about the music, stupid.'" Mr. Jobs says that there is a big difference between the way people listen to music and other activities like watching videos. Specifically, he said, you can listen to music in the background, while movies require that you actually watch them. "You can't watch a video and drive a car," he said. "We're focused on music."
Fair enough, but it means that they're basically ceding the market for personal video players to Sony, which will be making a big push in this department soon.