The newest version of iTunes (v4.8) allows video playback. I added an mpeg4 video to my iTunes library and it lets you double click and watch it. However it wouldn't allow a MS WMV file to be added to the library.
Also, in the preferences menu iTunes gives you the option of viewing the video in the same iTunes window, separate iTunes window, or full screen (something you cant even do with QuickTime unless you pay for PRO ($29).
Could apple be setting up a "QuickTime Video Store"? Will bands start producing "Extended Versions" of their video, or "behind the scenes" versions? Will television stations start selling your favorite episodes of "Grey's Anatomy"? Most importantly, will we all be lusting over a new VideoPod by Christmas?
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