So I did get to see the new Zune up close, and it is impressive!
Sleek, streamlined designed, lightweight, nice (big!) bright screen, wireless sync, great podcast support.
And the touch pad (or zune pad or whatever they're calling it), oh man! It's so much fun to use. I had to buy one. And honestly, at this point, unless your primary computer is a Mac, I don't see any reason to get an iPod anymore.
If you're in the market for an MP3 player, you owe it to yourself to consider the 2nd gen Zune.