iPhone video on AT&T

We've gone round and round on this before. I think Dieter and I may have mentioned this as one of a hundred guesses on the last Phone different podcast, but discounted it as being, like iPhone Extreme, something that fits into Apple's brand but doesn't really feel like a direction Apple would go.

TUAW was tipped to it being -- briefly -- on the AT&T website, however, so we have to consider it, don't we? (If the screen cap is for real).

Once upon a time Steve Jobs said no one wants to watch video on a tiny screen. Then Apple released the iPod video. So, there is precedent. Also, Apple named the iPhone 3G after its "killer" feature -- access to a faster cell network. So, if Apple considers video shooting, editing, and sharing to the the third generation's "killer" feature, iPhone video would certainly throw the spotlight on it (better than iPhone Compass, at least!)

That's the same thinking that was behind my betting the farm on iPhone HD last October. While Apple doesn't seem eager -- yet! -- to give me my 480x800 screen resolution, Microsoft has jumped on the moniker with Zune HD via its support for HD Radio and 720p dock-enabled output. If Apple includes new AV cables that let the newer, faster, more powerful CPU, RAM, and GPU push 720p as well, and HD is now off the table thanks to Microsoft's accelerated announcement last week, could iPhone video be a similar (if not quite as sexy) option?

What do you think?