iPod Photo

We heard the rumours of a colour screen iPod, but why would we want one? Oh, iPod Photo.
It would be more useful if you could connect your digital camera to the iPod Photo to immediately transfer your photos in the field though, when your memory cards fill up. But you still have to buy the Belkin Media Reader to do that, which isn’t cheap. Nice toy, but the screen on my PDA is bigger and it carries all the photos I’ll need.
Surely it’s going to have to compete with the upcoming handheld media players right? And it doesn’t do video (yet)?