H.264 Encoder Built-In?

Everyone is trying to guess the next big feature of Apple's products, and one I noticed was built-in, hardware H.264 encoding. It would take the place of software encoding now, and basically create a very fast pipeline between the creative applications (iMovie, FCP, etc.) and your presentation of them (Web, iPod, Apple TV, etc.). Looking at it more broadly, it makes sense to extend your computer to include the hardware to generate content more quickly and easily. At the end of this evolution, the computer will be a content creation device, and its output will be gobs of video, audio, text or other materials. You'll just hook up something to it and transfer or post it somewhere. What other possibilities will Apple dream up next?