In spite of dropping video support from the new iPod nano, a new exploration of the shipping firmware hints that Apple has photo slideshows and has left code for video support inside. Checks by TUAW show code for TV out for photos as well as captions, subtitles and other features that would normally be needed only for video. The movie code is most likely material that wasn't pulled during development, as the screen would be too small for native video, although it leaves the possibility open.
