I have an 8gb Ipod Touch and was trying to decide between the new 32gb Ipod Touch or this 32gb Zune HD because I wanted more than the 8gb of space. I decided to go out on a limb and try the zune hd. I would have to say that I have barely touched my ipod touch since I purchased this. It is just a great product. I was a little disappointed that MS did not release a sdk so developers can make a ton of useless apps for the device. But, to me that is not that big of a deal because I would download a ton of apps on the touch and would play them or use them for 5 min, then I would never use them again. The app store is the only area that I think microsoft needs to revamp to compete with Apple. The more apps they get, the better it will be for them.
As for the device, I think it is similar to the touch, but seems more modern and slick. So, I guess if you are looking for a device with a sea of useless apps and a mediocre music/video/browser device, go with the Ipod Touch. But if you are looking for an awesome music/video/radio device that does not currently have the useless apps that apple does, go with the Zune HD. Get more detail about Zune HD 32 GB Video MP3 Player (Platinum).
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