I'd love to see FLAC and ogg support as well.
Since Zune is an extension of the Windows Media Center platform, it's probably using either exactly the same audio codecs or something very similar. If that's the case, then it should be
trivial to add FLAC and ogg support (and everything else under the sun) to the Zune by allowing you to "install" third partie audio codecs.
While I'm on that point, you might as well allow third party video codecs as well.
I would understand, though, that Microsoft wants to have a unified and
predictable platform to sell, which generally means third party stuff goes out the window because it usually just creates a support nightmare. That being the case, I would advise Microsoft to create a wrapper around these third party audio codec (heck, you could just key-sign them) and provide them on the Zune website for download. This would create a more plausible compromise between the need for third party codecs and the support problems.
As a final note, I'd like to point out that supporting more formats only strengthens the Zune as a platform. If I were a Zune dev, I'd want to look at a
supported codec matrix and see my product light up everything (obviously AAC-DRM is probably not going to happen, though kudos for AAC support anyway). Honestly (and I don't know how the business people would take this) if you could buy a song on iTunes and play it on your Zune, you'd be far more competitive with Apple because its not just iPod v. Zune-- nobody wants to lose their entire collection of music to upgrade (and, yes, I consider it an upgrade to go to Zune) their mp3 player. Especially when you're heavily invested financially in it.