As the dust settles on Apple's press event today in San Francisco, let's dive in and take a closer look at what the product upgrades, the new partnership and product launches -- highlighted by a touch-screen, WiFi-enabled iPod -- all mean.

First, wireless access to the iTunes Music Store is likely the most significant upgrade to the iPod/iTunes juggernaut since the company made iTunes available for Windows. It adds a new access point to the iTunes store not available before. With the average iTunes owner buying only 20 songs a year, Apple -- and the music industry at large -- needs to provide fans with more ways and reasons go download digital music.

Apple Inc. CEO Steve Jobs also announced a deep price cut for the iPhone. The price of the 8 GB version was slashed to $400, a $200 cut. The 4 GB version, which currently costs $500, will be discontinued. Analysts overwhelmingly see the price cut as a positive move, rather than a reaction to low sales. The iPhone, in fact, was the best-selling smartphone for the month of July. Piper Jaffray analyst Gene Munster estimates about half of interested iPhone buyers have held off buying a device due to cost, however lists the "magical" price point at $300.

Apple's just-announced ringtone service has Warner Music Group onboard, but it's not yet clear what other labels are in. Sources close to the situation say Universal Music Group is not participating at this time, and no negotiations are currently underway to bring the label's content to the fold. The ringtones will work only with the iPhone. Apple VP of iTunes Eddy Cue expects the available number of tracks for the ringtone service to increase. "It's all about licensing and clearance," Cue says.

Although Apple and Starbucks are positioning their new pact as a music discovery partnership, this is really all about the WiFi. The Starbucks chain is the single largest provider of hotspot locations in the U.S., with 5,800 stores nationwide. While only a fraction of these will support the service over the next year, the deal significantly lowers the sometimes confusing barrier to accessing WiFi on the go.

First, it let's users know precisely where they can go to download music. Next, it eliminates the need to either log in or pay for the WiFi connection, a significant hurdle that has hampered past WiFi music devices. Finally, Starbucks' playlists give users a reason to visit the iTunes store while there -- perhaps educating the public on WiFi-accessible music the same way "American Idol" taught the nation how to use mobile text messaging.

"I can't think of anywhere else in the country with that kind of footprint, that kind of capability and that partnership where music is as important for both of us," Cue says.

Finally, Jobs unveiled upgrades to the rest of the iPod line. The iPod Nano now features a 2-inch screen and is capable of displaying video, and features the same visual navigation tools as the iPhone. The 4 GB version retails for $150 and the 8 GB version $200. The company also changed the name of the standard iPod line to iPod Classic, and introduced a 160 GB model for $350. The 80 GB version is a bit thinner, comes in an optional all-medal casing, and retails for $250. Both will be in stores this weekend.

Piper's Munster calls it "the most exciting iPod lineup ever," and expects strong 4Q sales this holiday season as a result. However analysts at iSuppli see the hard drive based devices a "stop gap" measure until flash-based storage increases in capacity and fall in price.