1. Ability to create a list of personal favorite songs as playlists/wishlists and publish on a weblog with links to iTunes (newsblogger for iTunes).
2. Affiliate program for above playlists (an Amazon style affiliate program with no physical product to deliver).
3. Ability to send someone a gift of a song with a picture and message (a value added online greetings card).
4. iTunes Music Store API.
5. Publication of aggregated affiliate playlists from weblogs on the iTunes site (iTunes celebrity playlists, but for everyone).
6. iTunes charts by song instead of by album, with cut and paste adsense like code to publish on affiliate sites.
I guess the problem is that the iTunes model is the reverse of the Gillette Razor model i.e. Apple makes money on the handle (the iPod) rather than the blades (songs). But the fact that the songs are a loss leader is a function of the record companies taking too much money – give people 5c per song bought as an affiliate CPA deal and I’d be happy.