The first gen Zune was very rough around the edges, and definitely looked like a small brick. As technology advances Microsoft is able to shrink the form factor, add larger drives for chaper, and add other features. In my opinion, flash drives should be Microsoft's concentration. They are much quicker, more durable, and smaller. The 4/8 both have flash drives, and so does the 32gb iPod Touch. I imagine future Zunes will come in either giant (100+gb) micro-drives or moderate sized flash.
Either way, it is unfortunate when a good product gets phased out, but most of the time the company knows enough not to mess with a good thing. Ideally the next versions would have many advantages, as the current gen Zunes do. This is why more people are buying Zunes now than ever before.
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