and a better WMP = more EU law suits. WMP still works very well IMO.
Not sure if one for WL Essential is good. It does solved EU law suits problems, however, you would end up with a Windows that couldn't play video by default; worse than Win95. Email is fine because most of them use web version anyway.
Anyway, I think it is more obvious that WMP would stay as player. It plays media. It doesn't do other Zune stuff to keep law suits away. And Zune software certainly need WP7 like interface to keep it finger friendly, and need a more consistant Sync interface.