I think short-term, things like the Rio Pearl and Ipod are where the market is heading. They still appeal to only a fairly minor market segment (10% who aren't petrified of computers).

If they were remarketed towards cars? I really think this is the way to go. Just come up with an FM modulator and car mount. Then have your marketing material play up this up. If SonicBlue doesn't do this with the Pearl, they are really missing the ball.

True, you sacrifice some audio quality, but you can talk people into a Pearl much easier than tearing up their dash and spending an extra $100 to get something installed while losing their radio and CD player. However, you gain the ability to take the player with you.

-Biscuits