Digital Daily never disappoints in the headline department and OMFG, this week was no exception. John pulled some juicy nuggets out of CTIA’s semiannual wireless survey, including the staggering figure of 4.1 billion— the number of text messages Americans exchange each day. Google Voice was among the top stories again, thanks to a group of House members who asked the Federal Communications Commission to investigate the service. Digital Daily rounded out he week with comments from Qualcomm (QCOM) CEO Paul Jacobs and the cacophony that is the net neutrality debate. With a dazzling turn of phrase, Jacobs supported the idea of “traffic shaping”, or giving network managers the keys to their net-neutrality handcuffs.

Three time zones away at MediaMemo, Peter didn’t seem sure whether it was a sadder week for music sales or for music in general. Music sales are still in a slump. What may be worse, however, is that the slump was only slowed by Michael Jackson and The Beatles, neither of whom seems like a pillar for viable growth. Amid music’s slump, there may be a ray of hope in videoland. MediaMemo reported that Network TV-buster YouTube seems to be learning how to play nice with the other kids, offering certain content producers a way to channel some revenue back into their own coffers. The momentary bright spot for media quickly evaporated when it came time to talk about print. Peter followed the story of Condé Nast’s multiple magazine closings. It’s always a sad day when there are fewer beautifully composed pictures of cookies in the world.

Rounding out the week, Walt released his anticipated review of Windows 7, and proclaimed it good enough to help you get rid of that lingering Vista hangover. With installation times averaging about 45 minutes and lots of neat new features, Windows 7 may just be good enough to make you feel like having a party. Mossberg’s Mailbox was peppered with several Windows 7 RSVPs. Walt issued his usual sage advice about switching to Windows 7, as well as a quickie about personal finance software. The Mossberg Solution covered a set of new point-and-shoot cameras, each with a striking party piece. Katie reviewed the Samsung Dualview TL225, which features a second screen on the front of the camera for convenient self portraits, and the Nikon Coolpix S1000pj, which features an actual projector right inside the camera. Both cameras earned praise for ingenuity, with the caveat that those new features come with an extra price tag.

Check back early and often. There’s always room for AllThingsD.

Apple has sold some 225 million iPods to date, making it one of the most popular electronic devices ever. And it’s sure to sell even more after the updates the company announced at this morning’s event. Among them: Larger, cheaper iPod touches and nanos with cameras and FM radios.

Following introductory remarks by Apple (AAPL) CEO Steve Jobs, Phil Schiller offers details, noting that “the iPod has 73.8 percent market share. The next biggest category is ‘other,’ and after that, SanDisk and then Microsoft pulling up the rear.”

Schiller adds that Apple has sold 20 million iPod touches since the device debuted. He runs through a lengthy sales pitch for the iPod touch, touting it as a killer pocket computer and taking potshots at rivals like Dell (DELL) along the way.

Moving on to games, Schiller notes the discrepancy between the number of games on gaming platforms like the Nintendo DS and the iPod touch. The iPhone OS, he notes, has 21,178 games. The DS has just 3,680. Point taken.

Moving on to some new game demos now. First up: Ubisoft with Assassin’s Creed 2, which, we are told, is “all about visceral combat, brutal hand-to-hand combat and one-shot kills.” Behind the presenter, a warrior is mercilessly beaten into submission.

Schiller returns to the stage, “Boy, that looks like fun.”

Tapulous, the developer of Tap Tap Revenge, and Gameloft, follow, both introducing new games. Gameloft’s Nova–a first-person shooter with multiplayer option–seems a far more compelling effort than Tapulous’s Riddim Ribbon, which appears to be a Black Eyed Peas-heavy variation of Tap-Tap.

Up next, Electronic Arts, which is apparently headlining the games section of today’s event. EA’s Travis Boatman takes the stage to introduce Madden NFL 10. The game boasts both custom-kick and draw-a-play-on-screen features developed specifically for the iPhone OS. Madden NFL 10 is available today.

Schiller again returns to the stage. “The iPod touch is the most affordable gateway to the App Store,” he says, adding that $199 is a “magic price point” in the iPod market.

With that, he announces the iPod touch price cuts we heard about earlier this morning: An 8GB model for $199, 32GB for $299, and 64GB for $399. All three devices are significantly faster, says Schiller. Interestingly, none seem to feature that rumored camera.

Price drops as well for the nano, but we knew about these. Apple has dropped the price of the iPod shuffle as well: $59 and $79. And the company is offering them in a new selection of colors. Plus, there’s a special edition of the shuffle crafted from stainless steel.

Steve Jobs returns to the stage. So those are the iPods, but there is one more thing: A video camera. He talks about the exploding video market, mentions the Flip, etc. “We want to get in on this market as well and we’re doing it for free….Boy, this really is the new Apple,” he quips.

Yes, the iPod nano does indeed now feature a video camera. The video quality looks impressive. Whoa: Apple has also added FM radio, a voice recorder and a pedometer to the nano. New polished anodized aluminum colors. 8GB model for $149, 16GB model for $179.

After a few concluding remarks about the new iPod lineup, Jobs announces what has become an annual tradition at these events: A live performance. Today’s artist: Norah Jones.

The end of her set concludes today’s event. No iPlatform. No Beatles on iTunes. But lots of product refreshes, software intros, and price cuts. Plus: Steve Jobs is definitely back.

Live from Apple’s “Let’s Rock” Event

• iPod Updates, Games, Nano Video Cameras
• iTunes 9, iTunes LP, Home Sharing, Genius Mixes
• Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”
• Event Photos by Adam Tow

Now, in the run-up to tomorrow’s invitation-only Apple event, the question is: Will Apple (AAPL) reach the bar? And with what? The answer, if the latest rumors prove true, depends on your feelings about iPods with cameras. Because according to reports, when Apple refreshes its iPod touch and iPod nano players, both will feature cameras–the nano’s for still images, the touch’s for photos and video.

We may also see a new price point for entry-level touch models, one intended to undermine Microsoft’s (MSFT) forthcoming multitouch Zune with HD display and to really juice App Store sales. Perhaps the 16GB touch at $199 and the 8GB at $150.

Beyond this, the event might also include the announcement of iTunes 9, said to include some sort of social networking element; “Cocktail,” a new music format that bundles full-length albums with art, video and other bells and whistles; and perhaps even Blu-ray support (no Beatles, though). And after that? Well, it’s tough to say. Apple’s never an easy read when it comes to product announcements, even when there’s evidence floating around that would seem to suggest otherwise.

So join us tomorrow for live coverage of Apple’s event to see if the above rumors prove true or if Apple’s got something else entirely up its sleeve. The event kicks off at 10 am PDT.

This morning, Apple (AAPL) broadcast invitations to a product launch gathering to be held that day at the Yerba Buena Center for the Arts in San Francisco. The invite features another variation of the iconic iPod silhouette and the tagline, “It’s only rock and roll, but we like it,” so presumably the event will focus on music, as expected.

Beatles fans will no doubt note that Sept. 9 is also the day the group’s Rock Band videogame will arrive at market. Coincidence, or could Wednesday be the day the Beatles catalog finally comes to iTunes? We’ll find out next Wednesday.

MTV and Harmonix Come Together for Unprecedented Deal

Exclusive Agreement Set to Bring The Beatles Music to Fans for the First Time in Interactive Form Here, There and Everywhere in 2009 …

The Beatles’ extraordinary music and phenomenal legacy is set to rock across the universe in the form of a video game …”

– Excerpts from Apple Corps/MTV Games/Harmonix press release

So those reports that the Beatles’ Apple Corps was in talks with Rock Band developers MTV Networks and Harmonix over the creation of a Beatles-themed videogame? True.

According to a Beatles pun-riddled joint press release from Apple Corps Ltd., MTV and Harmonix this morning (what, no “Everybody’s Got Something to Hide Except for Me and My Monkey”?), the companies have inked an exclusive agreement to develop what they exuberantly describe as “an unprecedented, experiential progression through and celebration of the music and artistry of The Beatles.”

“The project is a fun idea which broadens the appeal of The Beatles and their music,” Beatle Paul McCartney said in a statement. I like people having the opportunity to get to know the music from the inside out.”

“It’s cool,” added Yoko Ono Lennon, perhaps dreaming of a “Rock Plastic Ono Band” edition of the game. “I love it and hope it will keep inspiring and encouraging the young generation for many decades.”

No word yet on how much of the Beatles catalog is involved here–or if it will feature a “Revolution 9″ minigame. But that’s beside the point, really. The fact that the band, which has long refused to distribute its music digitally, has licensed its catalog at all is a triumph for MTV Networks. This is a monumental adjustment in the Apple Corps approach to digital distribution and one that could herald future deals with Apple’s (AAPL) iTunes service (Beatles fan Steve Jobs must be beside himself today), Amazon and others.

With their trademark dispute over the “Apple” brand finally settled and the solo work of Beatles John Lennon and Paul McCartney already for sale on iTunes, Apple (AAPL) and the Beatles’ Apple Corps. are rumored to be negotiating a business alliance that will bring the Fab Four’s remastered back catalog to the digital music store–for a sum of as much as $600 million.

Reports of the deal have the Beatles’ back catalog arriving on iTunes “within months,” perhaps even accompanied by a special edition “Yellow Submarine” iPod. That said, they should all be taken with a grain of salt–if not an entire salt flat. Apple has already dismissed them as “unsubstantiated speculation.” “This is not news, nor is it a scoop,” an Apple spokesman told Billboard.

Perhaps. Perhaps not. Discussing a potential iTunes deal with Billboard.com last November, McCartney said “it’s down to fine-tuning, but I’m pretty sure it’ll be happening next year, 2008.”

“Send my love to the aliens,” Beatle Paul McCartney said in a statement released by the space agency. “All the best.” Yoko Ono, widow of the Beatle John Lennon, the principal author of “Across the Universe,” also hailed the transmission–in her own special way: “I see that this is the beginning of the new age in which we will communicate with billions of planets across the universe,” she said.

“We expect Apple will enable video features on the Nano line for the first time, and the capacities will likely range from 2GB to 8GB,” Piper Jaffray analyst Gene Munster wrote in a research note published this morning. “The iPod may also be dramatically improved. Though we are less certain of the specifications for the new sixth generation iPod, it may closely resemble the iPhone (without calling features). Specifically, we expect the sixth gen iPod to be a widescreen device with multitouch technology. It may also have Wi-Fi capability and the capacity could be as high as 160GB. Apple will likely raise the lowest iPod price point back up to $299 (from $249). The fifth gen iPod is the longest-lasting iPod model ever; it was released nearly two years ago and refreshed with high capacities and a lower price last September.”

Also making the rounds are rumors that Sept. 5 will see The Beatles appearing on iTunes. Seems the title Apple has chosen for the event–”The Beat Goes On”– also happens to be the closing line of the band’s final press release.

Spring is here and Leeds play Chelsea tomorrow and Ringo and John and George and Paul are alive and well and full of hope. The world is still spinning and so are we and so are you. When the spinning stops – that’ll be the time to worry, not before. Until then, the Beatles are alive and well and the beat goes on, the beat goes on.”

Coincidence? Who knows. As Apple 2.0’s Philip Elmer-DeWitt notes, it was Sonny and Cher, not the Beatles, who made “The Beat Goes On” famous. That said, Apple has been hinting at a deal to distribute the Fab Four’s music for some time now. During the 2007 Macworld keynote address CEO Steve Jobs cued up the song “Lovely Rita” from the Beatles’ “Sgt. Pepper’s Lonely Hearts Club Band.” Coincidence, or another of Apple’s marketing master strokes? Again, who knows. At the time Apple dismissed Jobs’s selection of music as a matter of taste. “Anyone can rip their own CD,” said Eddy Cue, Apple’s vice president for iTunes. “Steve’s a huge Beatles fan–huge. He rips and burns.” A plausible explanation, but one that could have just as easily been smoke and mirrors as well. We’ll find out which on Sept. 5.

UPDATE: Word on the street has it that the Beatles will not play a role in next week’s announcement. Guess we’ll have to make do with Sonny and Cher …