While rumors of a Zune phone has been circulating since time immemorial (feels like it anyway), a corporate reorganization certainly points toward that way - just check out this mockup of a smartphone UI which made an appearance in a June 2006 Microsoft patent filing. Perhaps the acquisition of Danger will steer Microsoft towards developing a full touch screen user interface instead of plodding on with their Windows Mobile platform? Granted, Windows Mobile ain't all that bad but when you compare it to Apple's UI, the latter wins hands down. All I can say is this - more choices and healthy competition is always good for the consumer. Go Microsoft!