First let me say that I prefer the ipod over the Zune any day. Does that mean that the zune hasn't brought some much needed competition? Absolutely not. I played around with one at Target yesterday. The menu system is great. Size doesn't matter???? There's an age old question. The "same resolution" argument doesn't hold to much water either. I've got a 50" television and a 15" television. They are the same resolution. Take a guess at which one I prefer to watch. And Brown! It's the new black. I seem to recall a certain company unleashing a bunch of dayglo translucent product on the world not that long ago. As for form factor the iPod has the Zune beat hands down. Will that advantage last forever? Depends on how deep M$'s pockets are... The FM radio thing is a non-issue for me. I haven't listened to radio for years. I get my news from CNN/MSNBC/Local websites. I can cover 10 times as much info in a fraction of the time.
I can't wait for the next generation of iPod. Hopefully a little competition will mean that we all win!