XBox Music: Dead on Arrival?

I'm really happy that Microsoft is capitalizing on it's XBox brand to give it's music service a push.

From the looks of the launch yesterday, the XBox Music service though seems to simply be a Zune rehash, which if that's the case, will mean it'll share most of the same problems with Zune.

Let's compare the announced XBox Music details with the Zune service:

Mwhwa_medium

So what's new? Perhaps the Play To Xbox option makes it a little easier to switch between two devices, but you could do that already (just launch the playlist on the XBox Zune app), it just took an additional step.

Two big problems worry me that like the Zune, this will have a hard time catching on:

1. Support for iOS/Android. MSFT announced iOS/Android support for Smart Glass, but not for XBox Music. While I'm a WP7 fan, most folks are already deep in iOS/Android with tons of purchased apps, contracts, etc. For many people, inability to listen on their phones may be a show stopper.

2. No support for portable music players (PMP). This is a problem for those (like me) who use a music player heavily in the gym or running outdoors: I don't want to run carrying a bulky Lumia 900. I currently use an iPod nano which syncs with iTunes, but Microsoft has no such PMPs anymore. Further, I doubt 3rd party PMPs (like MotoACTV, Sandisk Sansas, etc.) will work because they won't be able to tell if you have a "Zune Pass/XBox Music Pass" and play your Zune/XBox Music.

And if most people can't play their music on their phones or a portable music player, I worry the service won't get very far..

Opinions? How might Microsoft get around the above? Do you think users will adopt it anymore than Zune given the limitations? If you have a Zune Pass, how do you get around the limitations?