Yeah, you've got options. I really wouldn't let the onboard storage be a deal breaker. What I use the onboard storage and SkyDrive for are backups for music. I DJ, and for those times when something can go wrong, I want to make sure I have alternate sources for music. To be honest, the Zune Pass is wonderful. I just started using it yesterday, and other than some obscure soundtracks, early rave songs, and some drum and bass tracks, I'd say I'm getting about 80% of what I've been looking for and you can create playlists right on the phone.