Zune 2.0?

Could it be? Is this the rebirth of Zune? Will Microsoft not pull the plug on the music player coveted by an astounding zero percent of American teens? Tech Web site Engadget.com is reporting what looks to be a total design overhaul of the device. Over on Cnet.com, they're saying it's likely a touch-screen model, possibly to be released in the fourth quarter. But Cnet's Donald Bell also asks if the gadget would be able to play games (a must in the youth market), and whether it might have Web capabilities. But wouldn't that creep toward the smartphone threshold? (On either front, Apple is whacking MSFT with either the iPod or iPhone stick.)

Still, somewhere, Zune Dude is breathing a huge sigh of relief.

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