I'm not going to rehash all the details, but the Zune 2 is on the way and all features are being backported to the first generation models.
THANK YOU MICROSOFT!
Personally my favorite features announced so far are podcast support and native support for h.264 and mpeg4 which is basically every podcast on the planet. (With the exception of you few losers using solely Quicktime MOV format.)
I haven't seen any details on the user interface changes or the software changes. Hopefully video will be on equal footing with audio now. (Playlists, groups, and tracking play counts)
Hopefully the music videos will be part of the subscription plan. If they are, I'm going to need a Zune 80.
Here are all the details: