During the iMac/iLife special event Steve Jobs introduced the iDVD part of the package with a dismissive "There are some people who still want to make DVDs." This followed a demonstration of some really nice HD web galleries being generated by iMovie. It's nice to know somebody that high up has caught on to the fact that locked-up oxidizing plastic discs that are illegal to copy are a bad way to hold video.
Panic's Steven Frank chimes in.
(p.s. I know I'll probably sound like an Apple shill for saying this, but I just got one of those new iMacs, and it's the nicest computer I have ever worked on, and that includes the quad Mac Pro I use at work. The glass front LCD and keyboard and overall zippiness of the machine just plain make me happy whenever I use it. I just put FCS 2, Logic Pro, and all my assorted free video transcoders on there and it positively sings.)