What I don't like about the new iPod Video though is its formfactor. I think Creative has done better with their Zen Vision, although its still Creative which leaves me unimpressed.

What Apple has done is instead of adding a video version to their line, they basically said for the same price as a regular iPod, you are now getting a slimmer unit with video capabilities, it replaces the regular full-size iPod, which is smart IMO.