It all depends on what you need.
Because the Zune is Microsoft's answer to the iPod, it's much cheaper. There are two new Zunes, the small, nano-like 4-8G, and then the revamped 80G, which is a bit larger.
All iPods (minus the shuffle) play videos now, as do all Zunes. Also, the interface for the iPod is a bit rough around the edges, but the new Cover Flow function is kinda cool. You can scroll through the album art and pick songs.
The only thing I think the Zune has the the iPod doesn't is the ability to share music between Zunes. At least that's what I hear.
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I once saw Phoenix Wright cosplay at JACON... I thought my eyes would shrivel up.
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