The Zen model is cheaper, better designed, has more space, and has more features than the Ipod like FM radio.
You're also able to use Mp3 and WMV unlike the Ipod which uses annoying itunes software and protected music files with digital rights management crap.
The Ipod is highly overrated and I would never be caught dead wearing one. They just aren't cool anymore.
However, the Creative Zen Micro is not very attractive because of all the controls on the front. So I say get the new...
Creative Zen Neeon.
http://www.creative.com/products/mp3/zenneeon/
It's also against my every inclination but if you really must have even small size as well, go for the new Ipod Nano.