Re: video:
I don't think the average user cares about playing DiVX/XViD/etc. That's a niche's niche.
Re: internet: Apple's products are almost as prepared as Froyo for accessing the broad internet. Both companies are pushing for custom apps. Apple is trying to regulate the quality (for better or worse), but I wouldn't classify Google as being non-App/all internet. Apple's very pro HTML5/web standards, so don't rule them out of the web-is-the-app business just yet. They may not be providing the web apps/services like Google does, but they certainly know their users want to be able to access the latest and greatest apps the web has to offer.
Re: internet: Apple's products are almost as prepared as Froyo for accessing the broad internet. Both companies are pushing for custom apps. Apple is trying to regulate the quality (for better or worse), but I wouldn't classify Google as being non-App/all internet. Apple's very pro HTML5/web standards, so don't rule them out of the web-is-the-app business just yet. They may not be providing the web apps/services like Google does, but they certainly know their users want to be able to access the latest and greatest apps the web has to offer.