So, the new touchscreen Zune is on its way, which Microsoft believes is going to give Apple’s iPod touch a serious kicking. Aside from the fact that the new Zune looks a little too much like a lighter, I’m still confused regarding Microsoft’s strategy for this product.

On the face of it, the Zune has a lot going for it: strong media support, a decent screen, HD out, WiFi, a built-in HD radio tuner. But many reports suggest it’s still going to be a US-only product, which seems absolutely bonkers if true—after all, I’m pretty sure Apple sells one or two iPods in Europe, Australia, Japan and elsewhere around the globe. (Some rumours contradict this, suggesting Microsoft is planning to release the new Zune in a ‘limited number of European markets’.)

Mostly, though, this appears like the perfect product to kill off the iPod, rather than the iPod touch. This is the device Microsoft should have released before September 2007, not some time in 2009. The reason: objectively speaking, OS X devices aren’t about the hardware—they’re about what you can do with the device. Microsoft can crow all it likes about HD output (especially given that the device’s storage will be filled rather rapidly if you add a load of HD content) and a radio receiver, but until the company has something that can stand shoulder-to-shoulder with the App Store, Zune will be yet another also-ran.