Man! the zaurus is starting to look like an excellent ipod without all that drm restriction.
Just so you know, the iPod itself has NO DRM ON THE HARDWARE. It's only on some of the files (i.e. the iTunes Music Store files) that the DRM is on.
It plays (even illegally acquired) MP3s, and un-DRM'd AAC (M4A) files, with no issues. In fact all the music I have on mine is non-DRM'd. Just ripped straight from CDs or downloaded, then re-encoded to AAC (since the file format is better than MP3s). And just to clear something up, I downloaded all that music legally, since up here in Canada, it's perfectly legal, no matter the source.
So yeh, the Zaurus is good for movies, as long as you have a good player, but for music it's not the best thing out there, in my opinion. The downsides to the Z as a music player are that it doesn't have anywhere near the storage size of some music players (even running with a microdrive, but that draws more power), and that it's battery life playing music pretty well sucks.
My 3rd generation iPod has to be charged about once every two days, getting about 5 hours of use out of it per day (of course I turned off the clicker and the backlight). And the 4th generation is said to be a lot better on the battery life.