For me, the deciding factor is the App Store. Even if you're not spending money, there's a helluva lot of cool stuff you can do with free apps. Clever little time wasters are just the start, then you get into remote desktop apps, using your Touch as a wireless touchpad for your PC, handy little reference apps with recipes, cocktail mixes, language definitions and translations, currency converters. I'm blown away by how many little problems can be addressed by finding and downloading the right app.

There's certainly a Zune app store on its way, but it took Apple a year after the iPhone launched to get their app store out, and then Microsoft will have to catch up on the library.

^That is another big selling the point, and the reason I almost bought an iPod touch so many times. I'm holding out till I have an idea of what to expect from a Zune app store before I decide, but just for my everyday usage, the browser, wifi, radio, and video/music playback should be enough.

I've asked around and most people i know haven't heard of the new zune.

The 'HD' in the Zune is a bit misleading.  iPod Touch actually has a better resolution.  My vote is for the iPod Touch.

Well the few stores I have been to that would carry it dont have any in stock so I would safely guess that its doing well in my area. I havent gotten a chance to use it yet and play around with the interface or anything but the few reviews I have seen semm to really like it.

Not so. I bought one with a broken digitzer - still works and makes calls - for just $60. Granted, I bought it off a friend of mine, but still ...

The Zune is way cheaper than the Touch?  Not true.

Zune HD comes in these capacities and prices:

• 16GB for $219
• 32GB for $289

iPod Touch comes in these capacities and prices:

• 8GB for $199
• 32GB for $299
• 64GB for $399

If you want an iPod Touch, you can get one for less money than any Zune HD.  The only common capacity is the 32GB and Microsoft's price is $10 cheaper.  I wouldn't call that 'way cheaper'.

Interesting. The Zune has HD Radio and HD Video out. I don't think the Touch or the iPhone has HD outs, do they?

The one actual HD thing that the Zune HD does is output video in 720p to an external screen. The iPod caps out at 480p. If you're really buying your pocket media player to plug into a friend's TV, and pixels matter to you, buying a Zune does make some sense.

Personally, I'm going to keep buying SD media as long as it's cheaper and takes up less space.

Also, the AppStore on the iPod Touch's completely sells it for me. So the Zune HD is coming with a radio. Who cares? I have Pandora, AOL Radio (Lets you listen to local radio stations and radio by genre. Tons of stations nationwide). There are countless great games and great apps for the iPod Touch/iPhone. Zune (before the HD) had a 1% marketshare. Whos going to develop for that? (iPod has 74% marketshare)