If >I< were Apple, I'd throw the whole cult thing out the fucking window, start filling up Apple designed cases with premium shit and out-Alienware Alienware. I'd become
Jpark - I don't think so. They'll charge too much because they're economic morons. The ipod worked because it's utilitarian and every model is a fantastic fashion accessory. It's looks have as much if not more to do with anything than it's capabilities as an Mp3 player - which are lacking.
That's simply not true.
Sound and featurewise it's above average. Designwise it's so far above everybody else, that they might as well not bother - and by design, I don't just mean looks. The iPod has the far superior ui on the market and that wheel was a stroke of genius - copyrighting it, was the masterstroke, though. Their prices are reasonably competitive (as opposed to their pricing on computers) and they way iPod and iTunes works together is above and beyond any other service out there.
Sure you can find plenty of MP3-players, that beats the iPod at one of the above features - except the ui - but none beats them in all. That's why they're marketleaders.
I'm sure somebody will beat them at some point - possibly in videoplayers, where the screen is indeed too small and the content easily avaliable (ie through iTunes) is subpar in the US and nonexistent in the rest of the world. And they'll be hurting when everybody has their iPod and the next big need to own gadget - which will be some smartphone variation - hits and it's most likely not being made by Apple.
They wont die, though. They'll just fire a bunch of people - including Jobs - and go back to serving some niche.