Sorry, but the 2nd generation Zunes are nice. I have an 80GB one (unaffected by the leap year bug). It looks good, feels good, It has a good UI (I never liked the iPod click wheel). With the last firmware update it now allows you to queue up additional albums while in the middle of listening to one, something I miss from my old Creative Zen and that the iPod can't do AFAIK. Why would I want this? Because I'm an old dinosaur that still listens to whole albums, and I can get about 2/3 the way through one while driving to work. I like to get in the car and queue up another to play after the first one on the way home.
The Zune software provides unlimited downloads for a monthly fee (Zune Pass) as well as per track song purchase (both DRMed and plain mp3). I find the Zune Pass much more conducive to exploring new music. It could use better categorization though, something I miss from my old Rhapsody subscription.