The latest iPod Touch. The two cameras with video chat, apps, Google Maps, Nike+ etc..., make it the better option. The ZuneHD is nice but it's missing things like apps; it's due for an update with a camera and WP7. For now, no question the iPod Touch.
I'm the proud new owner of an iPod Touch 4th gen. I would absolutely recommend it - it's cool as hell.
iPod Touch is overall the better product no question. Only thing Zune has going for it is the Zune Pass.
I had the Zune HD. Good player but not worth the price. Browser/Wi-Fi isn't that good and it just doesn't do enough for me at $200-ish. I hate Apple products because of the premium they charge for things like a slick wheel or touch screen is also out of proportion to me (not dropping an extra $100 for that) but at least you know you get the best player. Conclusion: If you want something with all the bells and whistle (Wi-fi, touch screen, apps, and etc.) go with I-Pod touch. It will be more expensive, but you'll like it, and minimize the frustration. If you just want something that plays videos and music, go with a sansa fuze (seriously). Or the Creative X-Fi player if you want something with a decent screen. Zune HD is kind of in the middle of the two which means there is no reason to get it.
Does not matter. I want the one that is better for me. It seems like Ipod touch is better because of HD video recording and more apps while the Zune might be a better music player. I have had bad experience with itunes in the past (crash etc.) Have they improved it?
I have a Zune HD, it's cool, but it really comes down to are you going to want to do more than just play music? If you want applications, then it's clearly the Touch. The Zune HD has a handful of simple applications, there will be a new Zune HD released some time in the future that will run the same apps as Windows Phone 7 (rumored atleast). But, the current Zune HD will not run WP7 apps. Browser pretty much sucked. Videos played fine. I did not buy the dock, so I don't know how the HD out is. The UI (Metro) is awesome, easy to search / navigate through collections. I'm not big into music, but I have my Zune on all day at work to drown out the background noises. I did not have a lot of music. To keep it legal I used the Zune Pass for the past year. It was nice to have any music that I wanted (everything that I wanted was available on the Pass). There are continual talks of a iTunes subscription service, some recently (http://www.engadget.com/2010/10/08/apple-in-talks-to-launch-itunes-subscription-music-service/). I'm actually going to get rid of my Zune in favor of using Pandora on an HTC EVO. I would personally go with the Touch ...
I have a Zune and like it, but my biggest complaint is the battery. It seems like if I charge it before the battery is completely drained, the next charge doesn't hold more than a few hours. I have no complaints with the software though I wish it would allow me to use something else. I used to have a Creative Zen and I could manage it through Winamp.
I love my zune... and I love the subscription system they have with their store as well. It's all about personal preference. Edit: Just an FYI, they have seriously upgraded their software... and you can get around using it at all if you don't want to now very easily. I use it because I actually like all the changes they made and I can download pretty much anything with the subscription without paying for it
I have a 2nd gen Zune. I actually prefer the Zune software to Apple's, but I think I'd prefer the new Apple hardware over the Zune HD. I'm guessing with the release of Windows Phone 7, Zunes will be updated. There are a lot of Microsoft rumors floating around that they're supposed to announce in the next couple of days.