How do you envision FaceTime being integrated into iTunes? (I think the iChat suggestion seems more plausible.)

Of course iChat seems more plausible. The Facetime-in-iTunes idea is rather wild, but:

* iTunes is available on Windows, thus bringing FaceTime to Windows and making it a serious contender against Skype

* iTunes is widely deployed and this move would greatly expand the FaceTime user base

* iTunes already has your Apple account, which is an email, which is used by FaceTime to make calls (if I'm not mistaken)

* iTunes even has a Social Network :) Maybe you'll be able to FaceTime your favorite artists? A one-to-many call would make more sense here.

Perhaps having FaceTime bundled with iTunes makes more sense. Anyway, speculating about Apple's events is one of my favorite pastimes :)

I'm not sure I want iTunes any bigger.

iTunes already wants to be too much. It has a store (with credit card management), your local music library, a social network, movies that you are supposed to watch via Apple TV, podcast management, the app store, low-level device management, a set of ratings systems for apps and music and movies... It's too much in one package. It violates a lot of good design principles. For example, because it's got so much going on, they can't optimize it for any one task. A lot of people think it needs some decoupling, not extra features.

I think if Apple wants FaceTime to be on Windows and non-iOS phones, they need to promote the protocol and not just one application of that protocol.