I know my mac zealot friend will be touting this and purchasing one asap. I expect that fully.
But let me ask this- just to bring this back around to the Zune:
Do you think there will be issues with cover art displaying poorly and pixelated on that glorious screen? I will be you a jillion dollars Steve Jobs will not allow the iPhone to have ugly, jagged album art. Every image will be hi-res so not one single glance at one of these devices will look less than perfect. (until the scratches and smears appear, of course

)