This is a very interesting idea from PBS’s Cringely.

For Apple the point here is to sell iPods to people who might not otherwise every buy one (my Mom, for example), to bring digital downloads to people who don’t have broadband or even a computer, and to make it all incredibly easy. You don’t even have to return the videos when you are done, since they will automatically time-out.

I think it just might work. Though I still think Apple charges way too much for the iPods.