My iPod died, which I only had for a year and a half, and Apple wanted 30 dollars to talk to me about my problem.
That's really weird...was it a hard-drive based model (ie. Mini or full-size), or a flash-based one? Also, you said it "died"...symptoms? Did you drop it a lot, etc?
I'm just curious, because I have 3 iPod's, including an original, first-generation 10GB that still works flawlessly (and yes, the battery still lasts for around 3 hours after 6 years of use). I also have a 30GB 5th-gen video iPod (bought purely for more storage than the 10GB) and an original 512MB Shuffle (for the gym), none of which have never given me an ounce of trouble. All have been dropped several times, too and used a lot.
I also have an iPhone, which the wife bought for me, which is by far the best-designed, most-intuitive, most-delightful-to-use piece of electronics I've ever owned (and I've had it for over 2 months now, so this isn't just the "new" factor talking). It and now the iPod Touch make every other MP3 player (including other iPods) look absolutely archaic by comparison.
As far as the Zune, the easiest way to summarize what I've heard about it is "it does the job well enough, but Apple has nothing to worry about." I've heard they've had serious quality issues with the Zune, though. If you're hell-bent on a non-iPod, I've *heard* good things about the Creative Zen.
Craig