It wasn't the marketing as much as it was the lack of features. When Zune first came out it was pricey as hell, with not much to justify that price but potential. It was, in essence, an expensive MP3 player with a built in radio. Not hard to understand why it wasn't a smashing success, and I'm saying that as someone who's had one since launch and loves it.
Microsoft has been glacially slow to tap into the possibilities the Zune offers. This won't threaten Apple's dominance a bit, no, but this does look like it may be a worthy alternative.