Something I just thought about...I wonder why Apple/Sony/Microsoft/et al haven't tried the "console strategy" with music players. (The "console strategy" is where gaming console makers sell their hardware at an artificially low price, then make up the cost from software sales).

For example, Apple could tie an iPod to an account so that all songs are $1.29 on the iTunes store (instead of varying prices), then sell the iPods for very cheap. I think it would get more people hooked on the cheap up-front price, which would eventually be recouped from the music/video/software sales.