Creative appears to be planning a rather iPhone-like touchscreen PMP to contain its Zii system-on-a-chip, if a filing to the FCC is to be believed (which it almost always is).
However, it seems it'll be offering its own twist on things. The camera is proudly labelled "HD Camera", implying that this thing will be recording in at least 720p. There's also a "Developer Edition", with the subtitle "EGG".
That could imply that this will be yet another platform for developers to build applications on. Both versions have Bluetooth and 802.11 b/g Wi-Fi, so full internet connectivity is possible, as long as you're within range of a wireless network.
Creative MP3 players are popular among those who don't want an iPod, so this could see success if it's not cannibalised by the Zune HD. We'll keep you posted.