Ah, the wonders of the January tech shows: 21st Century innovations hamstrung by 20th Century ground rules.

In recent years, the Consumer Electronics Show in Las Vegas and MacWorld in San Francisco have focused on a future in which computers, gaming devices, audio systems, televisions and the like will merge into an integrated digital world. But when the shows are over, reality sets in and the vision encounters some tough going.

A couple of cases in point this year: Apple's iPhone cellphone/iPod/PDA and Sonic/Roxio's latest DVD-making software.

The iPhone (or whatever it will be called after the legal wrangling about the brand name is resolved) was the uncontested champion of the hypefest. Apple CEO Steve Job, instead of being able to spring the kind of surprise announcement he prefers, was confirming the existence of the product that not only had been the subject of rumors for a couple of years, but also had figured into Wall Street's expectations for Apple's stock price. Even so, the sophisticated way in which iPhone integrates the functions of a cell phone, iPod music player, and personal digital assistant impressed one and all.

All this even though what was unveiled was really just a prototype. The actual phones won't be on sale until June. Thus, the actual features of the iPhone you might buy simply aren't known yet.

But there are disturbing signs that various commercial constraints will cause those features to be limited. For example, the iPhone has no less than three radios built into it - cellular, WiFi, and Bluetooth - but as demonstrated, the only way to transfer music to it is by connecting to your PC or Mac with the familiar iPod sync cord.

Among other things, the contracts between Apple's iTunes Music Store and the entertainment industry don't necessarily sanction other options. Similarly, you would think it would be logical that music in your library should be readily available for ringtones, but again there are licensing hurdles to overcome.

Moreover, at $500 (4 GB of music storage) or $600 (8GB), the iPhone will be far and away the most costly consumer "smartphone." In addition, it will be available only though Cingular (soon to be rebranded as the new AT&T). Unlike landlines, where service and equipment were split apart, cellphone providers control sales of phones that work on their networks. Cell-phone makers have inflated list prices, but you buy the devices from your provider at an alleged "discount."

One consequence is that a manufacturer and a provider will make an exclusive deal for the latest and greatest product at any given moment, and that device will sell for big money. The experience with landlines has been that separating equipment and service brings down consumer costs - and this is long overdue in cellular.

Sonic Solutions, meanwhile, and its Roxio consumer brand have to do battle with the ongoing issue of digital copying restraints - a huge issue for a company that is the market leader in software for making digital copies.

Roxio won a Best of Show award at MacWorld for Toast 8, its CD/DVD burning and media conversion software for Macs. With a slick interface and expanded features, Toast smoothly integrates with Apple's iLife suite of media tools and key third-party products, such as eyeTV, providing a much needed unified multimedia project center. Roxio also makes the Creator 9 Suite (previously reviewed here) that provides the same functions for Windows plus Windows equivalents of iLife.

While Toast and Creator will let you slice and dice your multimedia any way you want, however, one thing they won't do is let you make backup copies of your own DVDs. DVDs are encrypted to prevent duplication, and it is illegal under U.S. law to decode it.

Not only is Sonic/Roxio careful to be compliant with that restriction, it also has taken major steps to work with the entertainment industry. At CES, Sonic unveiled "Qflix," a new component of its DVD on Demand system that would allow users to download and burn encrypted movies, essentially identical to the store-bought variety.

One might think movie studios would rush to embrace this: Outsource DVD production and distribution to consumers - and probably charge them for the privilege. A Pro version would allow Hollywood to more efficiently manufacture cult and boutique titles. But while studios have said they welcome the technology, no one has yet signed on the dotted line. After all, Hollywood might have to do something radical such as bring its business practices into the digital age.

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Al Gordon is a Massachusetts-based media and political consultant who also writes about technology. You can read more of his articles at www.algordon.com/techblog.html and e-mail him at eagle@algordon.com.