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As I understand it, you can play your own videos on a PSP, problem being the available storage isn't that great. Still, you can get 2GB memory sticks for it, which is more capacity than the UMD discs they sell prerecorded movies on.

Bitt, I'm sorry, but that's a pretty ridiculous comparison. This rumored iPod is also what I've been waiting for, in that it's a slim device with a screen across the entire face. The PSP is nothing like this aside from the large screen. And the thought of carrying around enough memory sticks to store all the media I'd want is just silly.

As for the rumored device, it's had me very conflicted. I still loathe the idea of being tied into iTunes, I dislike the iPod UI, and I hate being forced to use a soup mode. Basically, if the iPod were a mass storage device, it would be my ideal MP3 player.

But for the most part, it has what I've been looking for. The screen takes up the entire face, the storage is rumored to be decent (anything over 30GB is fine with me), and the touchscreen is a bonus. I'm almost certain that the device linked isn't the real deal. Apple wouldn't be that careless. But I certainly think it'll be a lot like that, and I'm very excited for it.
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Matt