Today, they're announcing their over the air music service that seems like a winner for at least the reason that the phone store is mirrored by a store on your PC. Buy a song on your PC for 99-cents and you can download it to the phone; buy it on the phone (for $1.99) and it'll be ready for download on your computer at home.
We do know that the phone will have label support from "Universal Music Group, Warner Music Group, SONY BMG MUSIC ENTERTAINMENT, and EMI Music". But we have no reference to the number of tracks this will be at, but a quote in the release says:
Helio Music is a throwback to the corner record shop, combining great selection with a music-loving staff that can help you quickly find what you're looking for, and a comfortable environment where it's fun to just browse and discover."
And we have no word of support for the iPod or other MP3 players. But it seems unlikely that the Helio Music tracks will play in the iPod.
Whatever the case may be, we're looking at a nice bit of business model verification for iTunes over the air on the iPhone (Apple, please do this.) Except Helio's downloads are guaranteed to be streaming a lot faster, since they're on Sprint's topline Ev-Do network.