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More about Nokia's OLED screen on the N85: http://www.allaboutsymbian.com/features/item/The_Nokia_N85_and_OLED_screens_Not_perhaps_the_Holy_Grail.php
I've owned perhaps 5-6 different Nokia phones and now have an iPhone and i must say i was very impressed in the beginning as i could type messages even when in broad daylight when the sun is shining straight at my phone. This could be a reason why Apple themselves haven't implemented OLED into the iPhone/iPod line. I for one prefer a bright and viewable screen to better battery life.
I'm still pretty sure the OLED screens on mobile devices have evolved since the N85 and the Zune HD will most likely have the latest and greatest implementation. If only you could get the best of both worlds, great battery life, richers colors and contrast AND viewablilty in daylight... then we would have a real winner.