@Tremayne: Apparently someone's been drinking the Kool-Aid.
Both Microsoft and Apple are to blame for a lot of crap with their products. And your car analogy is rather poor, since the Zune has been out for a while and Microsoft finally got a clue and played along with aesthetics as well as bolster features to make an actual competitive product against the iPod Touch. How many people have an iPod? Tons, since it was one of the few better media players for the longest time to date, compared to less-spoken brands like Creative (moreso known for Soundblaster, but try uttering the name of that sound card to Joe Blow). Has anyone heard of an Archos? Not really, since they're not as ubiquitous. The Creative Zen Vision M was a pretty damn good media player too, but again, not as ubiquitous. We all know what Apple is. We all compare portable media devices with an iPod. But just because Apple got most people drinking the Kool-Aid with a good handful that are able to actually see WHY the iPod is a good gadget to have doesn't mean that everything else sucks.
Ever heard of any horror stories with an iPod? Not likely... because Apple HIDES the bad press. Exploding laptop batteries, iPods spontaneously combusting, yada yada... but no one pays attention to that because they're too busy making out with their cardboard cutout of Steve Jobs and are under that impression that Microsoft is the only evil entity. Apple does have some pretty terrible annoyances that a simple Google search can show you. Same with Microsoft. They both suck... just in different ways.
I'll challenge anyone else to show me how the Zune HD really sucks in comparison with the iPod Touch 3G and vice-versa like Xalor did and I'll give you an e-cookie. We already pointed out that the Zune Pass will cost you more in the long run, but what about people that don't care to be nickel-and-dime'd by the Apple App Store until that credit card bill arrives? As it stands right now, I think that Microsoft finally has something competitive here for the iPod-saturated PMP crowd, although the online content has quite a bit of catching up to do.
But maybe I'm just a Microsoft fanboy that owns an Apple iPod Touch 2G. Or just a guy who tries to see what's available before making the most-educated guess at what to buy and why. Who knows?
@Ash-Bash and k_nitin_r: As useful as the iPod Touch shows itself to be, I wouldn't advise getting an iPhone. The cost of ownership is just too great for less-than-great cellular performance with AT&T, unless Apple finally breaks it off and makes it available to other carriers. Carriers have to upgrade their networks to support 3G coverage and future-proof themselves for an easy upgrade to 4G, so it's not worth getting an iPhone for at least a while now. YMMV, obviously, but there are just too many people unhappy with their iPhones right now thanks to dropped calls and poor cellular coverage as well as feature limitations that shouldn't have been. You might as well get an iPod Touch and use Skype on it.