Macworld '05: A New Direction?

Macworld '05: A New Direction?: "First, the word is that Apple will field a cheaper version of its hugely successful iPod digital-music player, one that uses lower-capacity flash memory to store songs, rather than a hard drive, as in current models. Even more worthy of note, many expect Apple to unveil a $500 Mac. Even without a monitor, that would be far more affordable than the $800 eMate machine sold mostly to schools or the $1,300 consumer iMac.
...
If Jobs wades into those cutthroat markets, it will likely say a lot about Apple's future. It could that that tomorrow's Mac addicts will look back on 2005 as the year Apple set out to conquer the mainstream -- or shot itself in the foot trying."

Okay, so:
1. Disk-less iPod
2. ProleMac
3. Some type of glitzy me-too on the consumer electronics front (Media Center clone)