[Paul]

You don't have a very good grasp on the legal hurdles involved in the iTMS... They cannot just give everyone access to the store globally. Just impossible unless there is a real shake-up in the RIAA and even then there will have to be massive negotiations... not goona happen.

I don't think Microsoft will be very successful because the RIAA doesn't trust them and will not give them as much flexibility as they have Apple.

Apple should do none of those things and just react to the MS store. If they start to make inroads (which is unlikely) all they have to do is lower the price of the iPod. Problem solved. The only thing that would question their hold is if some other hardware company makes a REAL iPod killer... but such a feat will be near impossible, and even if it is done it will be extremely expensive and will not become a major player.

The iPod is the secret to the iTMS' success, not the other way around. That is why Real et al. are dying to open it up however they can.