Over-the-air iTunes downloads coming to iPhone?

The forthcoming version 2.2 iPhone software update will include an over-the-air iTunes retail application, according to a Silicon Alley Insider report. Citing leaked screenshots that depict an iPhone user downloading a podcast from iTunes via 3G connection, the report contends that Apple will activate an iTunes download application as well, arguing it makes no sense to debut a free podcast service but not a premium music service.
The timing makes sense: In September, Internet retail giant Amazon.com announced its Amazon MP3 digital music store would arrive pre-loaded on T-Mobile USA's G1, the first device powered by Google's Android mobile operating system. According to Amazon, the store offers more than 6 million DRM-free MP3 songs from all four major labels and thousands of independent labels. And, of course, the holidays are right around the corner, with both iPhones and iTunes gift cards expected to be popular gifts.

For more on the iTunes speculation:
- read this Silicon Alley Insider article