Zune extinction? No, not at all. Zune's hardware is already great, even the 1st generation is. I own a 80gb one and love it, it is a wonderful media player. But I think that some improvement are critical for Zune's future. Against iPod Classic, the Zune wins easily the battle. But it loses against the iPod Touch and should not. Zune's WiFi abilities are not exploited but to connect to marketplace or social network, this is a big mistake and prevent the Zune to be present in the iPod Touch market. Some email accounts, some iCal account, some RSS feeds, ... should easily be set from the Zune Software so the Zune firmware can use them to retrieve some data from WiFi connection. The device, since it is not "touch" is not very friendly to type stuff but could be very useful for retrieval. And the "menu instead of icons" style is nice as long as there is few items in the menu but when there is more than 8 to 10 items, I think icons are moer user-friendly.
I strongly believe in Zune's future but I think that it will need some software/firmware improvements.

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