What you are missing lickily, is that the Apple news only serves to put the market on notice that the next trend in handheld consumer electronics is HERE.
I never said EDIG was Apple`s choice...you have apparently made that assumption. EDIG does have a kino/DVAP platform targeting these markets and is working on kiosk related deals...and products that are preloaded with content.
Who and how that plays out remains to be seen.
BTW, if Apple had the technical expertise then explain portalplayer to the crowd, will ya? Afterall, it was just an MP3 player with no FM or voice recording, right?