Well I've used a Zune briefly and what I've heard from my friends, I think you should get the device over the Ipod. I definitely like the interface and big screen display over the Ipod (I have a Ipod Touch, not a Zune, but whatever) and correct me if I'm wrong, but the Zune is cheaper than the Ipod.
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An iPod of course their should be no question about it. The ZUNE was just a way for Microsoft to cash in on Apple's success. The same applies to the Xbox.
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Ah come on, bashing the console is completely irrelevant and shows how biased you are against Microsoft. Last time I checked, its doing pretty successful now (as in the 360). Microsoft realized that the market for the music industry is outrageously huge and they went for it. Zune is not a Godly feat, but I think its a worthy competitor to the Ipod.