Whatever happened to that rumor about Apple and Sirius doing an iPod satellite?

That rumor about
Apple and Sirius teaming up on some sort satellite radio-enabled iPod has sort of fizzled out lately (we harrassed one of our sources at Sirius and they did a pretty good job of acting like they had no idea what we were talking about, plus Apple
doesn't seem to be suing anyone about it), but it sounds like the biggest obstacle to do them coming out with an iPod satellite is that the chipset for a Sirius receiver is just way too big to fit inside anything that would have the same basic size and form-factor as the current iPod.
Doesn't mean they might not have something else cooking up, but we're feeling mighty iffy about this one.