The Zune HD might just be a contender. It has everything good about the present version of Zune and then some. The PC client is more visually interesting than iTunes. You can also subscribe to unlimited music. In addition to this, the Zune pass also gives you 10 permanent downloads for just $14.99 a month.
The new features include high definition video output and HD Radio. One impressive feature of the Zune HD is that is just about two thirds the size of the iPod Touch. It is also slimmer. The brightness and color of the OLED screen is excellent.
One of the most interesting things about this device is the user interface. Although the device is very small, the mixture of horizontal and vertical menus are tweaked to perfection to make the user experience great.
Other features are great too and rumor has it that wi-fi is designed to please too. The Zune HD is expected to debut this fall. It seems like it will be cheaper than the iPod Touch by quite a bit. If you were looking for an alternative to the iPod Touch and a good one at that, you might want to check out the Zune HD.