I disagree. Apple cannot be smug about the Zune because of Microsoft's marketing clout, the eagerness of content owners (music labels, film studios, etc.) to have a strong iPod competitor, and because however crippled the Zune does sport capabilities the iPod doesn't yet have.
I imagine Microsoft thinks of Zune as a replay of Xbox's strategy against PS2. PS2 was better but by attracting "developers" (aka content providers) to the platform and getting some mindshare, Microsoft was then able to pull together its vast resources to beat Sony to market with XBox 360.
Apple's best shot here to make sure that Microsoft's Zune player never gets any traction. How does it do that? Release a product with a substantially better feature set, before the Zune is released, at the same or slighty higher price point, so the average holiday shopper wouldn't even consider buying one. Retailers would be left with excess Zunes in inventory that it will either sell on substantial discounts, or that it dumps back on Microsoft.