I find the following from the Apple statement quite interesting:

"Free movies for iPods should not be far behind in what will rapidly become a state-sponsored culture of piracy."

As I read that, I was inclined to intrepret the statement to mean that Apple would oppose "free movies" on iPods. If that's the case, is this an indication that Apple is on the path of a movie download service and a true Video iPod? Apple has not indicated if they will offer such a service, but the sentence from their statement could mean that the service is planned.

You can view the story and excerpts at the BBC website.