Oh, look what we have here. Apple just updated its homepage on apple.com to include this banner, which states an "exciting announcement" from iTunes is coming tomorrow at 7 AM PST. "Tomorrow is just another day. That you'll never forget" -- that's quite a thing to write up on Apple's homepage.
We know that iOS 4.2 should drop tomorrow at 10 AM PST, and we know that iPhone and iPad users will be able to download the software update using iTunes. Will Apple change the system underlying the whole software update process? But then again, how would that be something we'll never forget? It definitely must be something else than iOS 4.2-related rumors.
What comes to mind if the long-awaited "iTunes in the cloud", based on that huge data center Apple is building in North Carolina. Apple could deploy a cloud-based sync and streaming solution for apps and media, or the rumored iTunes subscription service for music. The possibilities are really endless, and it's just up to Apple and how much they're willing to deploy in the first version of "the new iTunes". What we're sure of is, Steve Jobs doesn't hype something so much unless it's totally revolutionary and breakthrough. So the cloud would be, in my opinion, the most plausible answer.
We'll check back tomorrow at 7 AM PST. Is there going to be a live streaming of the announcement, anyway? Or just text and screenshots? We'll keep you posted as we find out more.
Update: more speculation here.