I've an ipod nano and I like it pretty much. Apple reduced the price of ipod shuffle to $49 yesterday and I ordered two,it's a bargain.
The Zune has a larger LCD screen, but don't be fooled by that... It's the same resolution as the ipod screen. In fact, the ipod screen looks more clear and sharp when held side by side with the Zune. They both have the same number of pixels, and that's why Zune looks more coarse, rugged and "grainy" because they stretched the LCD over a larger surface.