Personally, I hope a Zune phone never happens. I like my Zune for what it is. A great little media player. I'm really getting tired of everything trying to be all things to all people. I wish businesses would focus on what they do best and not try so hard to cover everything under the sun.
A perfect case in point, I still recall about 5 years ago when I had to pull to special order parking at a Mcdonald's. Why? Because I had the nerve to order a hamburger, fries, and a Coke. I mean, what was I thinking? Oh well, I then headed off to the grocery store so I could put some gas in my truck.
What I want is for the Zune team to focus on is giving us support for Podcasts, WiFi download capability etc. Let the Windows Mobile team focus on phone market.