TechCrunch has story about the decline of MySpace Music in which I think provides a great opportunity for Zune to take advantage of. One of the few remaining strengths of MySpace has been its huge catalog of songs, and a forum for established and independent artists alike to promote their their bands and stay in touch with their fans. Facebook has not really taken that much interest in making music a strong part of their platform, so if Microsoft played it right, Zune could gain some traction.
I envision the Zune website allowing independent and established artists to set up their pages on Zune(which would also be accessible via the Zune desktop client). Microsoft will maintain some control over the look of the pages to keep it consistent and avoid the gaudy designs that plagued MySpace. Zune social would form big part of keeping the bands in touch with their fans and vice versa and fans with each other. The pages would provide an easy way to purchase music, videos (which they do now), concert tickets, promotional items and other wares. A new section would provide an easy way to discover local artists via zip codes, city names etc, the venues where they are playing and an easy way to check-in and invite you friends. I would also like to see a deep integration with the Windows live calendar in such a way that one could easily with one click add a concert date to their calendar.
Finally just like how Microsoft has invested in a gaming studio to support their gaming efforts, I think they should invest in a Music label to improve their catalog of independent artists and expand their presence in local markets.