Zune really is better hardware wise it has more capability of running multiple thing at once, as opposed to the iPod, with a bigger screen, and the Zune has MUCH more memory than any iPod product including Phone/Touch

However the iTouch/iPhone is much better than Zune, overall

Zune > iPod

iTouch/iPhone > Zune

Personally, I have a Zune 120 gig