Will the iPod Classic (or older video iPods) ever have lyrics capabilities?
They already have lyric display capability and have for a couple of years. You just need to add the lyrics to the songs in iTunes, then on the “now playing” screen click the select (middle button) until the lyrics are displayed. This is talked about on Page 21 and 30 of the iPod Classic User Manual (PDF Link). Something like Canto Pod can help automate the process of finding and adding lyrics to your songs.