Man that's a huge picture!
I think this is the right direction for Microsoft. While I don't see myself giving up a standalone MP3 player for a long time...Zune itself is a platform. Microsoft has never really been about building in house platforms it controls like this (XBox being an exception...that's a very different market).
Getting Zune out onto WinMo devices is important for the future of the Zune brand and really will help move the technology forward.