Microsoft Zune to kill Apple's ipod

There is really only one way which the high profile as yet to be seen product brand introduction by Microsoft called Zune can defeat the dominance of the Apple ipod, and that is it has to be given away for free. If the player supports mp3 playback which all do to stay compatible, and since mp3's are pirated for free, then it's all going to be a win win scenario for the remaining consumers who have not yet bought an audio player. And those who have an ipod will throw that away for the free Zune device. That would surely destroy the ipod market share.
Everyone who bought 1 billion songs on itunes can convert them over to the Zune (uh is that legal?). Even if none of the installed base of loyal ipod owners switch, well I guess that's okay with Microsoft. There must be still plenty of consumers still waiting for something better than the ipod, or were they waiting for an affordable ipod? (that's okay too, Zune is all free) For the hardware partners who had their device locked with windows media player, will they get really angry and sue for breach of partnership?
It all seems like a doomed strategy, and guess who is giddy with anticipation, Apple most likely. Netscape was brought down by IE bundling in windows, xbox had a ton of money thrown at it with little return except maintaining a presence in the home theatre. If unhappy windows people are going to switch to MacOS X, then I guess happy ipod owners need to switch to Zune. I guess.