Your right, IPOD is not in the value category. But I would not infer that the Zen is a Skoda compared to an IPOD.
Simple fact:
IPOD 20 Gig is $499
Zen 20Gig is $299 ($50 rebate)

Zen has better sound (I know I tried both, FM option, Recording capability (10Min per file), IPOD has better display, software/interface is up for personal preference.

I would also bet that the Zen would be hackable too!