Like... not having a speaker, having a lower resolution screen, not being able to output full HD, nor play back any form of HD natively (oh, the irony of M$ naming), ...
OLED screen, 480 x 272 at 3.3" diagonally. All the Touch has is more
width to it's screen at 480 x 320. 16x9 widescreen movies get stretched on the Touch, look perfect on the Zune HD's OLED screen.
HD radio, and HD 720p content (downsized internally to play on the OLED screen) and playable via HDMI when docked an connected to your HDTV.
Music app draws in additional artist and album info, as well as links to related artists over WiFi.
HD movies/video downloadable directly from the Zune marketplace, and playable on your Xbox, PC, or Zune HD.
Will come with updated premium headphones.
Zune marketplace will let you buy songs individually, or subscribe to "all you can listen to" for $14.99 a month with 10 tracks you can keep. Subscribe for just one month if you want, then use the privilage to find and listen to a few thousand songs. Only buy the ones you like, then listen to the ones you've bought on your PC or any other media player. Everything plays WMA files. Only a few players play AAC files.
Yes. The Touch has games and apps you can buy or get for free from the app store. No indication yet if there will be an SDK for the Zune, but the current models have games, so I expect there to be downloadable games from Zune Markeplace.
The Zune HD will be less expensive than a Touch with comparable memory. It won't have an email or Stocks or weather app, at least not to begin with. The Tegra processor should be capable of running anything the Touch can run, but it will take time for an apps store to develop. It took time for the iTunes app store to develop too.
