WMExperts (via Crunchgear and Gizmodo) rounds up the latest on Zune HD, linking up the above hands-on video, and news that it might just drop at $100 lower than the iPod touch. In other words, Microsoft to Apple: "it's broughtn'ed".

Now, there's no getting around the Zune HD being an OLED iPod touch two years too late, much as the original Zune was a Wi-Fi squirting iPod classic two years too late. At even $100 discount, can Microsoft compete with a 3rd generation iPod touch, rumored to include a camera, perhaps video recording and sharing, and a 65,000+ strong App Store?

Meh. They'll get some iPod rebels and budget conscious adaption, no doubt, and that's probably all they intend. A strong #2 in the music player market, much like they're going for against Google in the search/advertising space, is likely enough for them now. Understandable, to be sure, but we'd still rather see a mind-blowing Windows Mobile Phone with Zune-like interface and hardware specs, Mobile Xbox gaming, and awesome Windows integration.

But we've been wanting that for years...