Microsoft Zune 2 is getting traction.
The Christmas seasonal sales peak had Zune 2 off the shelves (very different compared to Zune launch last year when they were not moving out of the shelves!)
The display is brilliant, Wi-Fi makes browsing a great experience, particularly on the larger & brighter screen.
It looks like Apple iPod is getting a competitor finally; and, that is good for the end consumer
Microsoft has a history of coming from behind and getting to a leadership position. While it may not happen for iPod, at least they will bring out another competitor of large scale to Apple