Sony is screwed because they are both a device company and a media company. They are a house divided against themselves because of the way that media/content companies are convinced that anything more advanced than the wax cylinder is going to bring doom, death and destruction to their business.

They will not unseat the iPod or anything else until they as a whole get the clue that the content must serve the devices and not the other way around.

I haven't bought anything from Sony in years because I'm tired of dealing with expensive crippled shiny crap that won't even work with different versions of Windows, let alone OS X or Linux.

The most important feature of the iPod is that it just works. It doesn't need to be rebooted 3 or 4 times a day, it doesn't complain about driver mismatches and it doesn't treat you like a thief. It just works.