How, exactly? Evolving a product is neither revolutionary nor particularly original. A multi-player hub? An app-store? I am pretty much sure everything on this list was invented by someone else. XBL is a successful product, but it's the execution, not being first.
Also, having the whole Xbox user population captive doesn't hurt market share. It's not like they could go to the Playstation hub.
> Zune HD is already on par with the iPod Touch in terms of what the product offers
Also, it's not feature count, it's how well it works on the whole. The iPod was never the feature-count leader - just about every competitor had more features or could perform some tricks the iPods of that time couldn't. It's how well rounded the product is. The iPod is a solid product and was the first really usable music player. It works really well. Besides that, a Zune HD won't work with a Mac, despite the fact iPods work very well with PCs (and, with some fiddling, other Unixes).
I don't always like Apple (their DRM'ed cables are ridiculous and OSX is Unix with a 70's feel when you drop into the terminal) but I have to admit they do some really excellent products my family can use.