I understand that Apple wants to make their IPOD interface as compact
as possible, but it surely not at the expense of typical functionality,
expected by the user?  I understand the lack of DIVX video format
support, and that ripped DVDs will not play on the new IPOD, because of
copyright reasons.  However, making the user watch movies from start to end
without being able to replay or skip parts of the video is a little
obnoxious, in my opinion.  The following post on Engadget confirms our discussion:

http://www.engadget.com/entry/1234000150063278/

Anton believes that the lack of in-video navigation is part of a
bigger ploy by Apple to force users to watch advertisements in subsidized TV
shows, which are speculated to be available on video IPOD, via iTunes,
at a later date. Here’s how he put it:

1. Apple releases an IPOD with video support, but no fast forward or rewind feature.
2. Music videos are available on iTunes for a $1.99.
3. TV shows will soon be available (especially if S.Jobs makes his deal with ABC).
4. Advertisement for Apple products will creep into downloaded video content.
5. Users will become frustrated and drop their Apple IPOD for another product.

 
As I see it, this scenario can go one of two ways: Either Apple will prevail – users will
accept larger video downloads packed with ads, and Apple’s sales will
boost as a result. Or, users will become frustrated with the inability to rewind
missed content, and video IPOD sales will take a slump – forcing Apple
to rethink the money making scheme. 

Personally, I think all those
users watching porn on the video IPOD
will quickly get tired of not
being able to skip to the juicy parts.  I’ll not be buying a video
enabled IPOD any time soon – I am quite happy with just my music on the
move for now.

A little Google searching found me a page on the Apple web site, where
Apple admits breaking this feature with the June ’05 software update.

http://docs.info.apple.com/article.html?artnum=301910

:(