My reasonable(somewhat) expectations/wishlist for the event:
-More video content for other countries(ie Canada) on the itunes store, available in 720p or at least their "large" size that they use on web gallery videos for .mac.
-More drm free labels.
-Wireless iTunes store on iPhone. iPhone bumped up to 16gb, 4gb and 8gb get $100 price cut, 16gb is now $599
-Shuffle will probably stay 1gb and get a price cut, maybe move to 2gb.
-Nano to be replaced with the fat rumored nano with that leaked osx like interface 4-8-16GB models.
-iPod to be replaced with the touchscreen ipod 40-80-120gb versions. $299-$349-$399 With wifi, I think wifi would be a smart move because they should be competing with microsoft's (albeit currently crippled) wifi in the zune. Wifi would enable features such as youtube, wireless itunes store, safari(my number 1 hope), and I would hope email, but that might bite too far into the iphone. Also another wifi feature they could add (and to the iPhone) would be the ability to stream your itunes library on your home network, so you can access all your songs(and properly formatted videos) on your ipod anywhere in your house.
With having the high end ipod price overlap the new low end iphone price, I think rather than cannibalizing iPhone sales it could sway potential ipod buyers to think more about the iphone as an option. Sure it's a tremendous amount less storage space but people will see the upsides of the phone over the ipod (phone, internet anywhere not just hotspots, sms, camera, etc). These swayed people could balance out the people out there who are potential iphone buyers, but really just want the widescreen touchscreen ipod.
But now I'm digressing too much, mainly I just want the touchscreen ipod with wifi & safari on the 5th.