Personally, looking good. And there are plans by Microsoft to create an accompanying app and content store. Not sure if the company will see the plan through though (just ask anyone who ever bought into PlaysForSure).
I don't need another mp3 player because i already own a Zune 120. But i can save enough money then i hand my 120 to lil bro and get the HD. Don't care 2 much for touch screens, but that 720p playback and HD out really has me goin'.
As i have an iPhone another ipod touch would be redundant. But without at least a 64gb version on the market I'm not going anywhere near. Microsoft expects me to keep 720p video on the device for output to an hdtv but hardly give me enough room to do it, IMVHO. I need something big to hold all my music since i already carry a small portion around with me in my phone.