i really prefer my zune. ive done the whole ipod thing, and although i wasnt faced with any problems, i still converted to zunes. the software is not even that bad.... their october update improved pretty much all of my worries, the zune operating system is very smooth, it has an fm transmitter, customizable backgrounds, decent battery life, and way more, pretty much everything you need, including some pretty jokes games.
the zune 80 and 120 were designed to compete agaisnt the ipod classic, not the touch. so, when i bought mine, i got a 80gb zune for the same price as a 8gb touch....
if you want more info, pm me