For myself, I prefer the iPod Touch vs anything else out there. First it has nice support from its AppStore, which has a lot of entertaining games, to some nice utilities.
Next is, as said in the OP, it is almost like pocket computer. Computers these days are pretty overpowered for an average user. Most people just want to be able to type a paper, check the internet, and send email. The iPod Touch can do 2 out of 3 of those things, just can't really write a paper with it. I think one advantage of the iPod over a computer is portability; you can check your email, and internet where you have wifi, which is almost anywhere these days. Another advantage I can think of is power draw. The iPod is powered by a little battery, compared to even a netbook. The iPod touch can last for a couple more hours than an average netbook (not comparing those crazy laptops with 10-24 hours of power >.>). Compared to the power draw for charging an iPod to powering up a computer, I think you'd save on your electric bill if you started using an iPod Touch for just checking your email, rss, and internet, than powering on a laptop, or even more, a desktop with a 400watt power supply, lol.
Bad side of the iPod Touch is for me, being a Windows user. It works with iTunes pretty well; syncing music and what not, the problem lies in programs it supports. The only bookmarks that can be synced are from Internet Explorer, so that throws out Opera and Firefox users (Firefox users can use some program to sync bookmarks, or use the addon "PlainOldFavorites" as a work around). Next, the only program that can fully utilize syncing is Outlook (not Outlook Express), as it can sync contacts, calendars, and email. If you don't have Outlook, you're out of luck syncing a calendar with your iPod, as no other program is support (no Sunbird support >.>), contacts can sync natively with Window Contacts/Windows Address Book, but half the time I'm guessing people use an online client, or Thunderbird, or something else. Windows Mail and Outlook Express are support, but Windows Mail doesn't support http email (good bye to hotmail), and it can be buggy when you're using POP with an Antivirus that scans email (corrupts your email database), and Outlook Express doesn't have a junk mail filter I believe, and it's rather old too (work around is use IMAP for your email, which is what I did with Gmail). So for a Windows user, using it as a nice PDA to sync with everything on your computer is pretty tough, unless you have Outlook (which is pretty expensive to
actually buy.) Another thing I don't like about the iPod Touch is the inability to use it as a hard drive natively. There are Apps in the AppStore that allow it to be a pseudo wireless hard drive, but they cost money. The last thing I don't like is the fact that mobile safari doesn't support flash, and you can't download files (unless jailbroken).
I don't know much about the Zune itself, but I think if you're looking for something tat just plays music and videos, then that would be a better way to go vs getting an iPod Touch. However from trying a Zune out in best buy, the interface felt really sluggish, and I'd very much prefer the interface of an iPod over that. However, I don't know about the other brands like Cowon and Creative. Seems like Cowon has something similar to the iPod Touch which higher capacities. Can't remember if it was them though.
This is almost like comparing the PSP to a DS. The DS is primarily a game console, where the PSP can do multiple things, such as play videos, music, play games and surf the web. Each has their own strong points, it just depends on what you're really looking for. I'm planning on getting myself my second iPod Touch (returned the first one because 2G came out, love Costco
), and this'll be my "first" iPod ever, just because it does more than just play MP3s.
