iTunes 'bloat' is a huge competitive advantage. Apple can make changes to their digital stores and instantly release to tens of millions of customers, including Windows users who aren't going to install a half-dozen discrete applications if Apple chose to split up iTunes.
Edit: and so this isn't just me ranting about iTunes (yet again, sorry), I think iTunes can actually harm Apple's image. It's tolerable if that's all you've used, but when compared to pretty much any other music player, it has glaring flaws (at least on Windows). To make a terrible continuation of the analogy, a Trojan Horse doesn't work if the Trojans hate your crappy horse and decide to never speak to you again.
Performance problems on Windows and tacking on one new non-music playing feature after another seems to have doomed the experience and reputation.
[1] Well, Audion was pretty dope too: http://www.panic.com/extras/audionstory/
People keep complaining about it on Windows, and on the Mac it is one of Apple's last Carbon apps that can't run in 64 bit. Just inspect it in Activity Monitor and see all the Carbon library goodness loaded into memory.
The only thing that makes sense with iTunes in its current state is that Apple are going to reduce the emphasis on iTunes and sync via the cloud, hopefully with a Dropbox-like LAN sync.
I commented a couple of weeks ago on a thread where I talked about brand equity, and iTunes is a perfect example of this -- it hasn't been solely about music in years, it has a half dozen bolted-on functionalities and it's in desperate need of a refresh. And yet the iTunes brand is so strong that none of that matters.
The only reason I still use it, really, is because the last time I tried using something besides iTunes to sync my music to my iPod, it nuked the whole library. As far as I know, it's the only fool-proof way of synching my iPhone with my iTunes library (which actually lives on my iPod, because its audio jack died.)
I'm not aware of another media program that does half these things half as well. But feel free to enlighten me.
Safari is the browser for "all weird stuff out there" and the iTunes app is the browser for "media shop and media I have bought".