Some reviewers do say the vision screen is oversaturated. The apple lcd above may be the same. As for the ipod, yes it's definitely undersaturated. The limitations of the amts of colors is obvious as well. (although pics look great) I've never hooked it up to tv, but I'm positive the ipod would look like arse. Both are probably still better than the psp, whose crutch is it's crappy refresh rate. (has a lot of redding brown blurring/ghosting)
I personally wish for screen that tries to stay neutral, I really hate under and oversaturation of colors. But the latter drives me nuts in more. It's really the implementation that matters I think, I'm sure even with 60+K colors the ipod's screen could've been better, but alas they're probably saving that for april . . . Anyways, just check out the players and see which flaw you prefer. I've always wanted to try a zen, but couldn't find any round here.