Rumor has it that TiVo is supposed to announce today that they will support exporting recorded shows to MP4 (the format supported by the iPod and the PSP). While this can be done now, it is far from foolproof or convenient. I think it is spectacular that a company is willing to go the extra mile to give customers what they want rather than force them into some obscure format war.
Of course, by supporting MP4 TiVo will have to adopt a way to appease the great gods of the MPAA. The plan right now is to add a video watermark. Personally, this is my preferred method of tracking. It does not put any direct limitations on me (since I don't plan to mass produce these videos or put them on bittorrent) and still provides peace of mind to the powers that be.
Let's all just hope the watermarking is enough to keep this awesome new feature off the MPAAs radar. I'm not sure how hard it is to crack video watermarking, but we all know any attempt to stifle piracy is futile. (By "we" I mean technical people and not the psycho, grandpa suing people at the MPAA).
Update: It's Official!!!