Based on a very indepth review on Extreme Tech, it would appear that the Microsoft Zune has undeservedly been getting a bad rap. I've heard over and over how terrible it was that the Zune wrapped its own DRM wrapper around any song you shared. Turns out it doesn't add anything to the file, it merely remembers it was shared and imposes play limitations. That doesn't sound so bad to me. Heck you can't even get at songs on an iPod without using 3rd party utilities. Also, formfactor wise, it seems it is only slightly longer than the 80GB video iPod and not the huge clunky device some naysayers have been claiming.
Although it doesn't natively support non-WMA video files, the software will convert the file to WMA on the fly when you sync. Now, I'm not a big fan of this type of deal–it's the way Sony used to handle MP3s, but it will probably save on storage use.
All in all, it sounds like a pretty decent device. I'm not in the market for a portable video device–my Palm TX handles all my needs–but I'm much more optimistic about the Zune's future…once the truth gets out.