Apple does it again. With the release of iPod Photo Apple takes another step in the direction of total domination in the digital handheld device.

View the Apple Special Event with Steve Jobs, Bono and The Edge.

This come in two versions, a 40GB model which sells for $499 and a 60GB version that sells for $599. Both weigh 6.4 ounces, are 2.4 x 4.1 x 0.75 inches in size (slightly thicker and heavier than the regular 40GB iPod), and have a battery life of 15 hours (which is 25% better than the 4G iPod). Also comes with an AV cable for hooking up to a TV for slideshows. Steve tells us that the iPod photo is shipping today.

The iPod photo looks like a wonderful device. Here is my 2 cents, I would like to see iPod with XM Radio. What a perfect combination, all my music, all my photos and XM radio. Then, give me Tivo like tools to record my radio programs and have my iPod learn my listening habits! Now that is cool!