Lets hope so. iTunes is one of the weakest Apple apps, partly due to the fact that it does too much – music, podcasts, books, movies, apps; playing, syncing. Apple should split the functionality and streamline the experience. Perhaps the introduction of iCloud gives them that opportunity – after all, rather than iTunes being the hub, iCloud will be the hub.
Perhaps when Stve Jobs said that with the introduction of iCloud, Apple were demoting the Mac, they can demote (and streamline) iTunes at the same time.