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The only thing that turns me off from the iPod touch are two things...

Lack of storage ($399 for 32gb? c'mon)

$9.95 for "upgrading" to new features that the iPhone gets for free.

I agree the touchscreen is nice but for these reasons my most recent purchase was another classic over the touch even with prices not too different for the mid range models. Either way I think the Zune is directly competing with the nano & classic and I think is doing a pretty good job (at least spec wise) in doing so. The new nano's are pretty sexy though, my girlfriend wants to upgrade her 2nd gen to one of these. The 3rd gen models need to fade away and never be remembered lol.



Completed X360:
High Def Movie Collection