[Dyvim]

The iPod side could tout

(1) its rating system (not that it's anything special but it's adequate while Zune's new rating system of love it/hate it is the pits if you rely on ratings to generate smart playlists)

(2) auto-refreshing (i.e. on the device without desktop) smart playlists. You know, like "Music I haven't listened to in the past month" that updates itself on the device as you play tracks without having to resync to refresh.

(3) iPod Touch. Ok, I know there's no Zune direct competitor, but that's exactly the point. Some DAP shoppers won't be choosing just between an iPod Classic 120 and a Zune 120; they may well consider an iPod Touch 8/16 as well. There's been a lot of harping about Zune's FM radio feature, but the Touch completely obviates the need for FM radio when you're in WiFi coverage- you can use any number of free apps to stream just about any internet radio station, or create your own station with apps like Pandora.

Edit: Forgot to mention that the Touch can now also browse for and download or stream via WiFi any podcast in the iTunes Store- that opens up a whole world of listening possibilities. Provided you have WiFi coverage, granted.

Of course David can tout all the obvious things: Zune's nice screen, better UI (at least compared to the Classic), wireless sync, the iPod Classic's dated and deficient UI, subscription music, etc.