The application is said to be separate from iTunes and be similar to Yahoo OneConnect. It will consolidate all your social networking services. No word on what platform this application would run on.
Their source says the application will broadcast the music you're currently listening to, share music on your network, connect with your friend's friends, update all your statuses at once, and broadcast your music statuses as well.
iTunes 9 may also bring application organization which will allow you to sort your iPhone apps alphabetically by, genre, by date added and in a custom arrangement.
Please note this information is not confirmed; however, it is from "a pretty reliable" BoyGeniusReport source.