HP is another company expanding from “just computers” to the consumer electronics space.
One difference here - instead of bringing yet another digital music player to the market, they've instead opted to sell a branded version of the iPOD.
Personally, I think that's probably a good choice. I was never impressed at Dell's entry. The specs are pretty good and it's cheaper - but even something that may look better on paper doesn't necessarily mean it's more desirable. (Kimbro gets it).
Instead of putting another me-too product that falls short out there, HP decides to use the best-of-breed.
I'd be interested to see if the device looks any different and what the price point will be. I doubt Apple will let them undercut on price, but...
UPDATE: Gizmodo says that as part of the deal, HP will pre-install iTunes on all of its new PCs.