I was really looking forward to the Zune HD. I was a little miffed that until now, there was no mention of the storage capacity in the information that Microsoft has provided the last months. I currently have a Zune 80 and between my music library, pictures, video podcasts and some movies, I frequently have 60+ GB in use and occasionally I get very near to the 80GB limit. There is no way that 32GB is even close to enough. If Microsoft could provide a Zune HD with 80 or better 120GB, they would have certainly given the iTouch a competitor to fear. I guess I would have to buy two of these to support all my media and that's not likely.
If the Flash capacity is a maximum of 32GB, then Microsoft needs to provide a model with a hard drive like the Zune 120. Obviously this would be a larger form factor but as long as it wasn't any larger than the Zune 120, most people wouldn't care. And battery life has not been a problem for me. I would think that the hard drive version could actually be cheaper.
I also wonder whether existing Zune cables will work with this device. Do I have to buy a new car charger, AC adapter, sync cables, etc or can I just use the ones I have?
I hope that MS will continue to provide software updates for existing Zune 30, 80 and 120GB units. We haven't seen any updates for a long time! I really like my Zune and I hope it gets first class support from Microsoft. I really would like to buy a Zune HD for the features that it provides but I can't if it is limited to 32GB. If it weren't for that limitation, I would be pre-ordering one today.