That is incredibly lame. There will be no video on the iPod, and here's why. It's an Apple product, which means that any video capability would depend on QuickTime. That would mean you'd need the ability to install codecs on the iPod. That will never be allowed, because then anyone could write a QT codec to play Windows Media, Ogg Vorbis, and everything else.
And, inexplicably, Apple doesn't want that. Heaven forbid the device become MORE useful.