Heh. I think they have the ability to dominate this market. While the iPod may hold a
huge share of the portable media market, if you look how quickly and easily they came to dominate the browser market (Netscape was annihilated, and now Mozilla is trying to take back the market IE stole from them) and game console market, with some proper timing (releasing in October = good), vendor lock-in (
, and the proper features and advertisements, they can easily take a large foothold.
Your average user is going to feel more comfortable just buying a Zune versus buying an iPod and installing iTunes, especially if the price is right.