Who really cares? Color screens, cool. Personal slideshows, not cool. Video, on the other hand, as in “rip this dvd to your ipod and play it at your friend’s house”, cool. Why didn’t they do THAT?
If the thing can’t take pictures, it’s through, there is only so much fun you can make out of a clever slideshow. The reason camera phones were cool is because they were cameras that were with you all the time, not because they could see pictures. Apple was in the perfect position to conquer them with a larger form-factor but-everybody-still-carries-it-everywhere-anyway device, but instead we get a pointless toy.
Where they so pressed to get a color screen to market that they had to ship it without any innovation? You’ve got 60GB, you let me rip music, why not let me rip some videos, I mean, it only makes sense.