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The Zune features a 3.3 inch OLED display and capacitive touch screen. OLED screens do not require a backlight like traditional LCDs. This means they can draw significantly less power than a traditional LCD. This isn't the first product with an OLED, but it's certainly cutting-edge technology, and something we haven't seen in any Apple devices yet.
The Zune's OLED features a resolution of 480x272, a 16:9 aspect ratio. Microsoft clearly wants you to watch movies on the Zune.
Microsoft claims the Zune's battery provides 8.5 hours video playback. That's long enough that your eyes should be worn out long before the battery.