Yeah, I recently caught this info on the wire. Apparently, they will begin selling music videos on the itunes software and then move to synching those videos onto the ipod device. But I am not expecting them to come out with this until the earliest xmas time. Why? Because they just introduced their "new" ipod (still 4th gen.) a few weeks ago. The only differnece was that they made it colour. But I dont expect them to keep that out for a long time.
For me, I'm quite happy with a music player -- I dont need the video, especially when I use the ipod for working out or jogging. For video on planes, it just seems that the ipod screen is too small to be worthwhile. I've tried watching movies on my pocketpc (took a LONG time to rip the dvd onto it) and a PSP and concluded that they dont compare to watching the movie on your laptop.