"OK, it’s pretty clear that the first iteration of Zune is pretty lackluster given where Apple and the rest of the market is. Underestimating Zune and Microsoft, however, would be a huge mistake. It’s not to say that this is a slam dunk for Microsoft but let’s look at the big picture. Form Factor – The first version looks pretty lame next to an iPod (having had the chance to put them side by side) and let’s face it, that odd D-Pad disguised as a scroll wheel was just silly (and Brown?) but that’s not really important. Look at the Toshiba Gigagbeat S design. We’re talking about a pretty compelling device and form factor. There’s no reason that Microsoft couldn’t simply put the Zune software on a comparable device. Remember, Zune is a family pf devices. Expect to see some without wireless and flash devices as well over time."
Michael Gartenberg from Jupiter Research shares his opinion about the Zune - it's a long-term play, and people are getting a bit too fixated on this very first player. That's understandable to some degree, but I don't think anyone (the Zune team included) expected to hit a home-run with the first Zune product out on the market. Platform plays are long hauls...