They should make a Zune phone in the first place, not this useless thing. But that will piss off a lot of their partners. If they want to capture handheld entertainment market, they should market it as "XBox Boy," "XBox Portable," "XBox DS" etc. Or, better yet, XBox Zune.
Although I admit that M$ marketing is doing better in targeting directly to consumers, they still suck at creating a sucker base compared to Apple Inc. And they still suck at integrating their products into cross-platform service provider such as Google.com.
I still think they should just abandon making more Zune hardware, and re-marketing Windows Mobile brand as Zune OS. Get a few Taiwanese OEM to make Zune smartphones and sign exclusive contract with telcomm companies, then providing Internet support to those plans via Bing.com. These will be killer product lines. If they can get the Weather Channel streamed directly to the Zune Phone, I'll get one immediately.
But, Noooo, they are still trying to emulate business model of Apple Inc. and Google.com, and intending to beat both companies at what they do best. I've wrote here twice that Microsoft Store is a bad idea, and twice I've got major thumbed down. It turns out that M$ Store is becoming a bad idea faster than you can say the word Zune.
M$'s consumer product team need to realize that they need to find out how to enhance consumer's life and provide a good product, not imitating others. They won the productive software battle because they can provide better overall package on enterprise level. Somehow their consumer product team has never picked up. Once they have a killer product that everybody wants but can't afford, they can start to release cheaper crap to lure suckers in. Why am I writing this and teach M$ how to expand? Nevermind, those M$ managers won't read this anyway, since they know better than consumers about what they need. Just follow what Apple Inc. did and copy from them!