I thnk I've figured it all out. MS is not preparing Zune Phone hardware.
But what they will do is release a high-end media device a la iPod Touch.
Then release the platform (with phone support) out to ODMs.
It may all be based on Windows Mobile, or the Zune platform will be able to be installed on Windows Mobile devices.
Problem solved! And you heard it here first.
Of course if I'm wrong, I disavow all knowledge of the existence of this post.
