Jon Gruber asks if whether Microsoft copied the wrong iPod, stating that the iPod nano (and its imitators) are where the money’s at.

I don’t disagree with this; the flash-based market is massive right now. But I don’t think Microsoft would’ve been able to pull off any sort of nano-esque form factor while retaining the functionality that they’re hoping will set the Zune apart. Case in point is, well, the Zune. At 30 gigabytes, it’s already larger than the 80 gig video iPod, so trying to cram whatever it is that’s making the Zune that large into something even smaller, even with flash memory, is probably a challenge.

Plus, the nano doesn’t play video, which in and of itself isn’t much of an issue, but that’s currently how Microsoft justifies the need for a larger screen (another Zune selling point). Without video, I just need hear the music and know what I’m listening to. Nothing else matters.

Apple has this figured out, so rather than add unnecessary features, they make the device smaller and smaller. Again, not overly practical once you get past a certain point, but that’s where the ooohs and aaahs come from. I don’t want a nano, but I’m still impressed by them. They are eye candy, and Microsoft, because of their feature-driven agenda, can’t quite measure up.