Nice to see MS striking back after all those Mac vs. PC ads with Mitchell and Webb in them. I'm sure they've done this with tongue firmly in cheek (I suspect the iPods in there have been planted), but it hasn't stopped a lot of Mac afficionados getting all riled up about it.
A Mac user friend of mine was criticising the way Microsoft now have an interview question for certain positions that is "How would you improve the iPod?" I think it's kind of how MS works: they identify a market area that they're missing out in, find out what consumers don't like about the current market leader and design their product around that.