Microsoft still doesn't get it. Ars does:
To unseat a player like the iPod and to convince users to ditch any PlaysforSure tracks they might own, Microsoft needed to hit a home run on launch day.
According to the same review, however, the Zune locked up right out of the box and there are pretty serious problems syncing, in addition to the much touted iPod-killing wifi feature being so severely limited that it's next to useless. If anyone is seriously going to "kill" the iPod now, they have to have something that works flawlessly and smoothly, in addition to having some cool new distinguishing feature that makes it so tempting that users just might be willing to throw away all their iPod FairPlay tracks. In short, it's next to impossible to "kill" the iPod at this stage, and MS doesn't get it.
Unfortunately for them, their anger at this situation, which is not unlike the situation they've created with Windows and Office, does not an iPod killer make.