IPod does MPEG4 at much higher resolutions (480x480), and as companies like this produce external displays capable of resolutions such as 800x600, I'd expect Apple to support them. Besides, there are some other video players with 640x480 output or higher.
“An engineer explained to us that hundreds of ear impressions were gathered in the name of research, and while each one obviously boasted its own unique shape and size, one single characteristic remained uniform across the board: the entrance into the ear canal is not a perfect circle, it's an oval.”
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Looks pretty sweet.
IPod does MPEG4 at much higher resolutions (480x480), and as companies like this produce external displays capable of resolutions such as 800x600, I'd expect Apple to support them. Besides, there are some other video players with 640x480 output or higher.