Note how he mentions the Apple patents on the click wheel, iTunes + iPod integration patents and software, the fact that cellphone + music stuff doesn’t dent player sales (because the killer app on the cell phone is the cell phone), and the fact that this will cannibalize the existing Windows Media Player market first before it touches Apple.

Any wonder why Creative settled their lawsuit on terms favorable to Apple. Look closer at the settlement and it becomes more clear that Creative is no idiot and knows which is a bigger threat to their meager market share: Apple’s iPod or Microsoft’s Zune.