iPod with 120GB storage capacity in 2007?

Fujitsu has decided to start producing 1.8" HD (the format found in iPod), as other HD manufacturers have already decided or planned. And Fujitsu has posted high goals: grab 30% of market shares for this type of HD. Thanks to the perpendicular recording, Fujitsu expect to be ready by 2007 to release a 1.8" HD with a capacity of 120GB.
With such storage possibilities, one will have to find new capacities for iPods and similar devices. Maybe Apple will propose at that time to plug the iPod to your TV to watch movies in HD format.