Speaking of videos soon to be as copied as MP3s Sharp just released their portable video player. It uses SD Memory cards and they say a 64meg card will hold about an hour of video. It only runs for 1 hour on internal battery or 3 with external when watching video. In music only mode it's 3.5 to 7 hours.
It records so basically you plug it into your VCR and copy some video (or your stereo and it will record audio in MP3 format. I wonder if it has the Macrovision crap in it which would prevent you from recording a movie off video or DVD although that would seem to make it pointless. Though I guess I can think of one thing. If I could set a timer I could set it up to record my favorite late night programs and then watch them on the way to work in the morning on the train which would actually probably be good for my Japanese though maybe not good for my eyes.
Given that the Foma cell phones and now the J−Phone phones support video you could just add these features to the cell phones. You'd just need more memory in the phone or a memorystick slot which some phones already have. Then you'd have worse battery issues though.