The rumor does hold some promising foresight in that the conceptual Zune HD holds parallels to the target audience and general engineering of the original Zune, which also had a lower-density screen and a heftier housing than the first iPod.
Expectations for the Zune HD include implementation of a full-fledged Wi-Fi music store. It should be also safe to assume from its name that a lot of focus will go into video playback, though nearly all information currently available is nothing more than hearsay. Could we start to see some hype over a potential iPod killer all over again? Unless Microsoft tinkers with the idea of sharing some of the strengths a new Zune could inherit from the popular Xbox platform we seriously doubt it.