iMovie Moving Online?

Due to my source Crunch Gear, rumors say that iMovie may be moving online! This is something kinda different that I hear. For those of you who don't know what this is, iMovie is a home movie editing software. This would be kinda difficult. I mean like... Why would you even want this to be online? Would you? No. In my opinion it would be difficult to use web based editing tools. And if you have large data that cant be stored online, this more reason why this is stupid. Video is going two different ways. 720p and 1080p is increasingly easy to edit says Crunch Gear. But storage and distrubution is difficult. Though poorly encoded streaming video like most of youtubes content is easy to store and distribute. In some way we need to conbine the picture quality of HD videos and the usability of streaming video, but putting the editor online doesn't seem like a step in that direction at all. Apple seems to have made some slightly different dicisions in which seems like desperation. Example... There are rumors that they are planning to design a 7-9 inch iPod Touch. AND NOW THIS. Only what confuses me.... is how is this a benificial step to apple?