Oh, well it looks like all the previous generation Zunes (both flash based and hard drive based) are on their way out and Zune HD will the only flagship product going forward!  Though the new UI and features in Zune HD  are not expected to be compatible with the old Zunes, I was still hoping Microsoft will surprise folks by providing  a firmware update. Even though the current rumor does not rule that out, I doubt Microsoft will invest any resource on a product that is on the way out !

On a positive note I am glad Microsoft focused all its energy on Zune HD and making it player that can truly viable challenger to iPod Touch. [You can see a comprehensive comparison of  Zune HDs  to the current generation iPod Touch here]

Via Crunchgear