Microsoft doing their own phone? Dumb idea imho, they'd be better off spending the money on propping up Nokia as lead WP8 developer (and they have some nice looking designs to boot). On the other hand if the “Surface Phone” is an attempt to do a Nexus style device (really designed for developers and early adopters) then that make a heck of a lot more sense.
Tpyo
I'd like to see MS make a iPod-touch iteration of the Zune hardware with WiFi (and Skype?).
Great idea - yes, there's some other vendors out there already (Sony, Samsung, Archos and Cowon come to mind). But doing a real iPod Touch competitor - so a phone but without the 3G radios - could be a big seller on the back of Microsoft's name and presumably the no-brainer/no-effort sync of your library with your Windows8 desktop.