The Zune HD is better than the iPod touch. It has a higher battery life because it has an OLED screen which uses less power than an LCD screen which requires a backlight. The Zune HD gives you more memory for the price, so it's the better choice for price.
The Zune HD also has the option to use a Zune Pass. A Zune Pass gives you unlimited music for $15 and you can keep 10 songs as MP3s forever. The music keeps working as long as you pay for the Zune Pass each month.
Even if you pirate music, ZP is a good idea because the ZHD was made to be a music discovery device. You can find new music and artists based on the artists you have in your Zune. With Zune Pass, you can make a Smart DJ playlist that incorporates songs from the Marketplace so you can discover new music. Other features of Zune Pass are Channels, which are self-updating playlists, celebrity playlists, and streaming music from any computer or your Zune.
The Zune is better for ease of use because it is designed to be the best media experience on a portable device. In the main menu, you can pin artists, songs, playlists, apps, movies, videos, and songs to your quickplay list for easy access. You can also play music faster by tapping the play icon next to an album, artist, or playlist.