In May of 2005, Bill Gates said he didn't believe the success of the iPod was sustainable. The Yahoo! News article that Pocket PC Thoughts quoted is no longer available, but I found a Fox News article.
Ah...does anyone see where I'm going with this, or are you wondering why I'm bringing up ancient history?
Well, I could go in two directions, really. The first, of course is asking why Microsoft would bother with the Zune, if musically gifted phones are the true iPod-killers (unless, of course, he, uh, changed his mind)?
My other leaning has me picturing him gleefully and furtively loving on dreams of shiny little Zunes stomping the poop out of iPods of all sizes and colors. There are precedents, you know.