Prior to the iPod Touch, I liked Zune's navigation and found it much more intuitive and useful than the wheel that iPods used. The software was also good and it played music just as well as the iPod.
I think the UI/interface for the ZuneHD was much better than the iPod Touch as well, and the software is still better than iTunes (although both are kinda behemoths). The iPod Touch wins on having the App Store though, the Zune just really never competed in that area for me. Now I go with an Android phone, and with Google Music, my ZuneHD hasn't been used in forever.
I think the UI/interface for the ZuneHD was much better than the iPod Touch as well, and the software is still better than iTunes (although both are kinda behemoths). The iPod Touch wins on having the App Store though, the Zune just really never competed in that area for me. Now I go with an Android phone, and with Google Music, my ZuneHD hasn't been used in forever.