More insightful analysis from Cringely
The whole point of Zune is to stay in the game and to position Microsoft for future success. Remember, it takes Microsoft three tries to get almost anything right, so maybe this time they are actually counting on that. But if Zune is an eventual financial success for Redmond, it won't be through hardware OR music sales, but probably through location-based marketing.
Also in this week's summary:
1. The HP way -- long gone, apparently, or at least mutated
2. Verizon's unlimited wireless broadband -- which isn't unlimited (read the fine print)