According to TechCrunch, twitter might be messing around with the idea of displaying inline media right on their page. To me, this is potentially a peak at Twitter’s answer to the biggest problem (I think) they’ll face over the next year: “How to compete with Facebook’s features, but maintain differentiation. The little box that Facebook gives you (see above), is definitely sleeker and cooler then Twitter, who relies on Bit.ly and Twitpic for links and pictures.
The question for Twitter to ponder (and I don’t know the answer) is, should they copy Facebook’s idea. There are a number of things to consider in this space: