I won't claim to know much about internal circuit design like Nikon, but I wonder if Apple will be bale to pull-off a design as slim or somehow slimmer than current 5G models. That's keeping in mind the addition of a much larger screen with a higher resolution that will probably require a larger capacity battery. So while I don't think they'll throw thinner desires completely out the window, if they have to go thicker than the current gen just to accommodate those other features, it could allow them to implement additional circuitry for a digital out without that being the main component that prevents a thinner model. Again I'm no expert, but I wonder what can be offloaded to the dock if they decide to put the port there only?
The main point here is that a digital interface would NOT be come from a desire to offer better audio quality. After all, it's a portable device. I see it as an offshoot of making the device more of a true movie viewer. Sure, on-screen viewing is important but if they can offer higher res movie content on ITMS, output to an external display becomes much more attractive. Surround sound is a big part of movies these days. So, I can very much see surround audio as part of ITMS movie downloads. Obviously, users could take full advantage of that on their desktops or laptops. If you're doing that, why not let the portable device do the same?
I could be very, very wrong, but I don't see it as a ridiculous stretch given the changing role of the device to better accomodate video.
Jeff
