If the internet is ubiquitous and the content is hence 'everywhere'; can someone explain why there is a need for an iPOD to store music? Surely you only need a device to access this perpetual inventory on-demand?

I am sure people will get over the need to 'own' the music if you can play it anytime anywhere anyway.

Is that a new business model that will save music?

That is: Originators or publishers can own the content on a server and distribute free iPOD-like devices and charge a fraction of a cent every time the song is played. Kinda like mobile phones without the plan.