My buddy Dave Caolo has posted some thoughts on what iCloud may do with the Time Capsule. Dave suggests that Apple could use the Time Capsule to assist in streaming media and backing up media to the cloud and accessing it from any device.
For the sake of this argument, let’s assume that Apple can use existing Time Capsules and Airport Extremes with external USB hard drives attached. While the rumors of an iOS-powered Time Capsule ring true, I can’t imagine Apple making its new cloud service dependent on a new piece of hardware.