If this ars technica report is true, I simply don't understand Microsoft's Zune HD strategy...

It's official: no plans to sell Zune HD outside the US

So, Microsoft, please explain to me how the Zune HD is going to compete with the iPod touch (and iPod nano IMHO) if it is not available anywhere outside the U.S.? Now, Microsoft is quoted as saying in the article that they are looking to expand Zune HD sales outside of the U.S. But, um, I'm not getting it. What exactly are the factors blocking it from being sold outside of the U.S.

Lack of components? Maybe but doubtful. Lack of language localization? Not likely. App store issues? Hmm. Apps have not been officially mentioned for the Zune HD. But, there are those photos of the App menu option on the screen. Perhaps...