I found this article today. I think it's interesting, but I also think that it may be overreacting just a touch. The gist of the piece is that users aren't embracing the iPod's video capabilities the way Apple expected that they would. I have to say that I'm not surprised; I don't own a video iPod - yet - but I do have a Portable PlayStation (PSP), and I have the same trouble as other small-screen-gizmo users: sometimes it's hard to focus on, and it gives me a headache after a while. But I think the reason is that the content, in most cases, hasn't been specifically designed for the tiny screen. That content is still largely being developed, and many producers (us included) are still testing out the best methods for creating content. In the same way that widescreen and HD are changing how we shoot (we have more screen real estate to fill), the ultra-small screens of iPods and other handhelds are changing the way we actually tell the stories. It's beneficial to be brief, simple and easy on the eyes.
There have been many times that we've produced multiple versions of the same product for our clients, to suit different needs. A video developed for DVD distribution may be too long or intensive for the web, so we'll cut it down. Sometimes we'll adjust the graphics, making them bolder and easier to read. And we'll use more close-ups if appropriate.
Overall, I think it's kind of neat to test the limits of new delivery methods. It can be frustrating, but it's also rewarding. And it gives me an excuse to get a video iPod.