Is Microsoft's new Zune, ready to fight iPod?

Finally days are over, when Microsoft Zune owners keep it hidden in their pockets and feel embarrassed in front of flashy iPod touches and iPhones.
Microsoft Zune is looking forward for a complete makeover and high definition upgrade. According to sources, new Zune HD will be launched in first week of September this year and will be available in 16 GB and 30 GB versions.

What’s new in Microsoft Zune HD?

1. Display clarity is an area where Zune left its competitor’s way behind. High-resolution screens are the best in the industry and new bright OLED touch screen offers great user experience. Touch screen allow you to flip through music, movies and other stored content with ease.
2. 480 x 272 resolution on its 16:9 wide screen display works perfectly well to convey visual stimuli without being a pain to your eyes in the long run.
3. It features an integrated HD radio receiver that enables users to tune in to high quality sound much better than traditional radio.
4. Zune HD is highly compatible with Xbox 360.
5. One of the most unique and interesting features built in Zune software is its ability to wirelessly share files between other Zune’s.

You only speak positive, what's on the "negative" side?

In terms of distribution format, Microsoft offers its buyers with Microsoft points or Zune pass, providing unlimited download (temporary) and permanent access to top 10 favorite songs each month (with this initiative also I don’t think Microsoft Zune Marketplace comes anyway near App Store)
Battery life, as always leaves a gap for users to desire something extra.

Anyways Zune will be out only in September and users will finally mark a point on its destiny… till then, keep guessing.