Don't forget besides offering cheap product, MS also forces you to use their products as part of a package or for access to their Site. There is no reason why IE is required to access Window Update website except for MS to keeping you from deleting IE from your computer once you upgrade to FireFox.
One of the great mistakes in the US is that we never standardized on one wireless standards like Europe - GSM. It's the reason why in Europe you could buy a phone and use it with any provider without locking yourself in. Here, almost no two wireless companies equipment work with each other, except for T-Mobile and Cingular. Even then, the phones are locked to particular networks. Granted, we get discounts for the phone from the providers. But even after we fulfill our contracts, they refuse to unlock our phones for use on other providers.
So given the above, it's almost impossible for Apple to release their own IPod phone without backing from the providers. And getting backing from the providers would mean crippling features or adhering to Provider's interface etc. Which Apple is unlikely to agree, afterall, user interface is an Apple hallmark. Apple could always release the phone at a high price without provider partnership. Quit possible, given Apple could get people to fork over half a grand for a MP3 player.
Then again, given the history of cell phones released in the US without provider support, it's not a pretty picture. Nokia N-Gage anyone?
I crave the Nano, but I may just have to hold on to my Zen Micro while I wait for the Ipod Video. My thought is, there is nothing holding Apple back from introducing the Ipod Video hardware right now. The more likely reason, in true Apple fashion, Steve is probably working on securing the rights to content first. So as to solve the chicken or egg problem of do you release the hardware before there is content. See ITunes/IPod success. Ideally, with the larger screen of IPod video, Apple may have chance to bring back another past product that was ahead of its time and merge it into this one - The Apple Newton. The first PDA on the market and one that would solve the problem of limited PDA for Apple computers now that Palm is on its last leg.
Bill Gates: Energizer Bunny of the Digital Age
Unleashing the Writer: Jer's Novel Writer
iTunes Phone Falls Flat, nano Goes Huge
Nano Signals The Times Are A Changing. Again.