It's only HD if you use it to drive an external HD display - e.g. a TV. This is something the current iPod Touch cannot do.
Which is not enough of a selling point to make any real difference.
What MS did essentially is to come up with an iPod Touch duplicate (that fails to duplicate the Touch's current key strengths), 2+ years after the iPod Touch, and put a Zune logo on it, hoping we'll all think it's September 13, 2007.
They did this with the original Zune (vs. the iPod Classic.)
But THIS TIME around, MS thinks they'll get a different result! Meanwhile Apple is about to render MS' entire effort into an non-event come the new iPod release in September.
The real question is . . . why miss the boat AGAIN? Why not release something truly compelling and desirable BEFORE Apple? That's kinda the whole point. Good Lord, even when Apple arrives LATE to the game, they still redefine the market completely (smartphones.) That's a rarity and Apple might be a special case. Not everyone can pull it off. But at the very least, Windows sufferers should be able to expect MS to use all that R&D money (apprently they have far, far more than Apple) to once in a blue moon upstage a company that is half their size, with half their workforce, with half their global reach.
Something is definitely wrong in Redmond. it's getting to the point where I don't really hate MS anymore, I just pity them. You have to feel sorry for an operation like that. It's being run by the WRONG PEOPLE. Probably a case of lions led by donkeys. The first to go should be Ballmer.