Lala and The Bottomless iPod

I love my iPod Touch.

When I bought it, I had to make a decision about how much capacity to spring for. I ended up going with the 16GB model. Not ideal, but it carries enough music to keep me happy and I couldn’t justify spending another $100 for the 32GB model.

But with news that Lala is working on an iPhone app, the whole notion of capacity may become irrelevant.

Lala is a music site where you can listen to, buy, and store your music. It’s the storage part that’s important here: You can store practically limitless amounts of music on Lala and stream it to your iPhone or iPod touch (with a WiFi connection). That means you can have access to huge amounts of music even with an 8GB player.

On Lala, you can listen to any of the six million or so songs in their library one time for free, and you can “buy” a song to listen to online as many times as you like for $.10. It’s not clear to me if the one free listen, $.10 online purchases, and music that you own outright will all be available via the iPhone app. But if that’s the case, you might be looking at the biggest challenge yet to the iTunes Store…at least for iPhone and Touch users.