The Zune HD continues to rank among our all-time favorites in terms of industrial design, so it's good to hear that Microsoft isn't entirely abandoning the PMP sector for its new Windows Phone 7 hotness. Mary Jo Foley of ZDNet has consulted her tea leaves (and in-the-know tipsters) and emerged with the strong feeling that some new Zune hardware is brewing up in Redmond. Little specificity is available, beyond the obvious postulation that a new ZHD would probably be driven by an ARM CPU and take some software pointers from WP7, but we're told to look toward the early 2011 horizon and see if we can't spot any sexy new media players emerging. A mirage is as likely as the real deal right now, but it's always fun to look to that horizon, no?

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Zune HD could have all-new model in the works