1) MP3 is the global standard. WMA is widely supported, but really of no use to anyone. What's an MS employee to do? Convert his/her whole collection?
2) If employees are "hiding their iPods by swapping the telltale white headphones for a less conspicuous pair," it only goes to show that the listeners actually enjoy listening to their music. The iPod earbuds are more a fashion statement than an audio accessory.
The Creative Labs Nomad plays both MP3 and WMA and is half the price (with twice the disk space) of the over-priced disposable iPod. Problem solved.
Amen. They blow...big time. If you are laying out the $$$$ for the IPOD, get a set of BOSE TriPorts.