The new iPod makes an ideal portable to stuff into an in-car deck. The new Rio Karma would too from its functionality, but I believe its form-factor may limit its potential (sleekness if you will)

I was thinking the exact same thing when I saw the first iPod and then again a few weeks ago: Standard looking in-dash stereo unit with fold-down face. Behind the face is a slot-load CD and a rectangular opening to slip in your portable player. The portable does all the playback work and transmits analog audio to the head unit (or digital, but I'm trying to work with existing products in this design). It would also send all the data needed for the current track and next tracks (whatever info is needed to run the info modes of the display). The portable's docking connector would need to support two-way communication of course because the controls on the head-unit would instruct it to play/pause next/prev track, navigate lists, etc.. Of course the head-unit would power the portable as well as charge it while it's being used.

That said, there could be a nice-looking home dock for it as well with integrated display as well as TV-output.

This would be my ideal empeg replacement. Not the camelot unit shown at CES. Drawback right now is that none of the portables can have more than 40GB of storage. Have to sacrifice somewhere I suppose. Then you can have your music with you and not have to carry around a stylish pelican case to house it in. Nor a large battery strapped to your back if you want to use the player outside the car.

I believe the Rio brand is in the hands of a company that has a better chance of pulling off such a product than many others.

In the meantime, I hope someone is already thinking about making an IR receiver unit that plugs into the Karma and allows it to be used with a universal (or Kenwood ) remote. This would be great for the home as well as for anyone wanting to use one in their cars with a current head-unit supporting Aux-In.

Bruno