If Apple falls short of having a full-screen display with touch-bezel technology for the v6 iPod, then they need to at least scale the size of the display to reach that of the Zune. A 3.0” (or slightly larger) screen would help market some of those videos. Without going full screen, Apple will have to stick to the 4:3 aspect ratio in order to leave room for the scroll wheel. If they do that, they should add the easy ability (perhaps using an orientation sensor) to rotate the display for landscape viewing (either lefty or righty friendly, considering the symetrical nature of the iPod controls).
This would make watching widescreen adaptations of television programming enjoyable instead of the greatly reduced visuals we get today with the 2.5” screen. The best portable experience I’ve had with HDTV-sourced programming has been watching CSI:Miami on a Sony PSP (using PMP Video @ 480x272 native). The only problem with the PSP is you need darkness to enjoy it since the display is so reflective. But the depth of colors was amazing.
So wake up Apple and give us a bigger display, even if you can’t muster the full front panel.