It seems as though every time Apple makes a small incremental change for the iPod, the whole world gets up in arms over it. Think about it, from 1st to 2nd generation, they added a touch wheel. From 2nd to 3rd, they moved the buttons, and added on-the-fly playlists. Then came the mini, but that should really be considered an entire new product line, not part of the normal iPods. From 3rd to 4th, they changed the buttons to a click wheel (ala the mini), and increased battery life. Now there's the photo iPod, which is essentially a 4th generation iPod with a colour screen, and an advanced earphone/video-out plug.
What I'm trying to say is, aside from minor cosmetic changes (except for the colour screen), and some firmware changes (which they refuse to incorporate into older versions), there has not been a dramatic leap forward. The new photo iPod is not some new idea that Apple came out with. mp3 players with photo viewing capability have been out for a long time. In fact, the current iPod, and the new video one, is probably one of the players on the market with the least amount of features. There are players out there that's about the same size with radio, recording, video, photo, and acts as a USB host (which means that you don't need an extra widget to upload photos to the player). Yet those players get almost zero press coverage.
Of course, there are merits to the iPod. The wheel is one of the most successful and useful UI for its purpose, and they have a patent on it (although my wireless keyboard also has a wheel to control the volume, so maybe prior art?). The design is sleek and modern/minimalist with almost no protruding buttons/switches. Their customer service is great if you have a problem (which I've had, and frustrating it was).
But what Apple has most succeeded in is the almost viral marketing. Everyone knows that iPods are cool. You almost can't escape the silhouette ads all over the walls and the mock copies all over the internet, or the people walking down the street with the poor-quality, yet distinctively white earphones, or the celebrities touting them around in their daily escapades. In fact, Apple is only adding (minor) features every few months just to generate buzz again, simply because they can. And each time they add a feature, they will be featured in every tech discussion group and mainstream news media, and they perpetuate their "coolness". That's why they don't even need to stay competitive with the competition.
As a side note, here's what the iPod would have if it actually had to keep up with the rest of the market:
- play more formats (like .wma and .ogg)
- receive radio (could be done via a remote)
- record radio
- record voice (without extra widget)
- longer battery life
- colour screen
- display photos
- play video (on the player, or via video out)
- not having to use a proprietary upload method (i.e. just move the music files into a /music directory, videos into a /video directory)
- USB host (so you don't need a extra widget to upload pictures)
- multiple dynamic playlists
- more as I think of them
Yes, I know, some of these features are already on the iPod. But them rest of them are not dreams, they're actually implemented in many players, it's just that no one knows about them.