Zune?
As a gadget fan, Microsoft's announcement of Zune made me happy. No matter how ugly, unusable or terrible the product is ... the fact that it's out there means that Apple needs to take notice.
1) Ipods are overpriced. No secret there. If Microsoft delivers a capable product at a lower price point, everyone wins. I've been obsessing about a free ipod for years, mostly in part because I refuse to overpay. Maybe in the future we won't have to.
2) Ipods are meant to be replaced every 4 years. Hence no removable battery. Zune being out there will provoke Apple to make drastic changes, but it might.
3) Severe lack of features and innovation. No FM tuner, no wi-fi / bluetooth. No reason to innovate since the rest of the field is not a threat.
Microsoft putting their full backing behind Zune is only going to amp up competition and hopefully drive prices down. Even in spite of the lackluster name bestowed on the ipod-killer. The whole scenario screams of Xbox vs PS2 battles, with the Xbox looking very healthy in its 2nd iteration.