The Zune never really had much of a chance to begin with. It had no substantial advantages over the iPods besides an FM radio. Even that isn't much of an advantage. SQ wasn't that much better than iPods, if at all, IMO. I've had a 30GB Zune, 120GB Zune, 2 4th gen iPods, and a 5.5G iPod. Aside from Rockbox with crossfeed enabled, not one of those I mentioned seemed to stand out over the others. Haven't heard any iPod Classics, so I can't comment on them.
Being locked down to the Zune software wasn't very fun. Being locked down to the Zune firmware with lack of updates wasn't very fun either. There were so many little problems with it that could have been easily fixed, but never were. Gapless playback worked right maybe 10% of the time, and my Zunes kept adding diginoise to some of my songs. Reripping (dBpoweramp in secure mode), resets, etc. did nothing to help this. Why keep using an MP3 player that makes my music sound worse?
If the Zune 120 had a Rockbox port and relatively cheap working LOD cables, I'd definitely give it another shot. Until then, I'm sticking with my 32GB CF modded Rockboxed 5.5G iPod.