The Zune HD seems to have been designed to be a competitor to the iPod touch. I think their main failure was not hyping it up enough. However, with the onset

The Zune HD seems to have been designed to be a competitor to the iPod touch. I think their main failure was not hyping it up enough. However, with the onset of Windows Phone 7, we may see a bit more hype on the horizon. Archos has some touch devices that look pretty sweet, though they aren't exactly a household name. Cowon has the S9, which seems to have been designed around the same idea as the iPod touch, but they're even lesser known than Archos. Creative probably has something too. I think it mostly comes down to the fact that Apple has ridiculous name recognition when it comes to mp3 players. Most of the players I mentioned are better featured and more "open" than an iPod touch, which sounds great to hackers and tech enthusiasts, but normal people want something that is simple, shiny, and recognizable (trendy). And Apple has their fists clenched tightly around that market.