There was a rumor for a while Microsoft was gonna make a play for Rdio. I think Apple's belief is they can do what Rdio is doing themselves -- and with the iCloud streaming and everything now -- we might be getting close to that kind fo thing from iTunes.
I'm now using Rdio for about 99% of my music listening on a daily basis. I only use iTunes to keep track of podcasts, play pre-release albums, and as a media server for TV/Movies on my Apple TV. Besides that, it just kinda sits open most days. The Rdio catalog is just too perfect to add a bunch of shit to my queue - hit play - and forget about it.
There's no doubt in my mind that Apple thinks they can do it better than Rdio, and I don't necessarily doubt it either. They'd probably rather champion that they did it themselves and kill Rdio, Spotify, and Pandora in the process of doing it.
I just really like Rdio's new updates.