EMI and Apple announced higher cost, higher quality DRM-free downloads. What I’ve seen missing in most analysis pieces I’ve read is what this does for the iPod and the AAC format.

1. It ensures that larger hard drives in iPods are need for the non-video crowd. That means upgrades in the near term, say over the next year or so.

2. It spreads adoption of the AAC format to other players, helping to push mp3 into the background and (tries) to marginalize WMA.

3. It sets up the iTunes Music Store for amateur content for sale.

Call me crazy…