Microsoft Doesn't Want Apps for the Zune HD?

"The current version of the XNA Game Studio suite (3.1) allows developers to build games that can run on Windows PCs, Xbox 360 and Zune media player devices. Version 4.0 is going to support Windows PCs, Xbox 360 consoles and Windows Phone 7 Series phones (but not the Zune HD), according to a blog post by Michael Klucher, Lead Program Manger for the XNA Development Platform."

OK, this is a bit of a head-scratcher for me. What I thought was going to happen was that when the Windows phone 7 ecosystem kicked off at the end of this year, we'd see a Windows Marketplace for Mobile that would address both the Windows phone 7 users and the Zune HD users. In fact, the millions of Zune HDs out there would serve as a good base for developers to code for. Instead, it's looking like XNA Game Studio Suite 4.0 isn't going to allow the Zune HD as a target platform...so now I'm completely confused. Microsoft doesn't want apps for the Zune HD? Or their plan is to continue the painfully slow process of building their app catalog one app at a time, all developed internally?

Or is it that second-generation Zune HD (presumably coming out in the fall of this year) will have a bigger screen running at WVGA resolution (800 x 480) and essentially be a Windows phone 7 without the phone components? And that's what Microsoft wants developers to code for - but not the Zune HD. If so, that sort of sucks - that leaves all the current Zune HD owners out in the cold in terms of apps. Is that really Microsoft's plan? What do you think?