I would say it would be a huge mistake not to cater to the masses and offer iTunes syncing! Sure, add other formats as well, but don't leave the majority feeling they were forgotten.
Agreed. Just so long as there is some security involved. I agree that we should also have some connectivity to other devices and support multiple formats, but it's nigh impossible to keep everyone happy. It's amazing how many people might protest and call this the most ridiculous application of in-car entertainment, simply because they cannot get their ogg vorbis tracks to play!