Once again, rumors have re-surfaced that Microsoft (NSDQ: MSFT) is going to launch a Zune phone—this time at CES in January. I’ve held off reporting on the rumor because I don’t think it is true, but more importantly, if it were true, it wouldn’t be that big of a deal.

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The rumor has been around for years—well, since the Zune first launched. But it seemed it was squashed for good in October, when Microsoft’s own Steve Ballmer said the Zune software may become a component of Windows Mobile devices in the future, but not a standalone phone. A spokesperson elaborated: “Right now we’re happy to share the limelight.” Still, despite those statements, CNBC reopened the wound in November, when it raised questions about a device codenamed “Pink,” and Barron’s continued the speculation on Monday, reporting that Microsoft may use Ballmer’s Jan. 7 CES keynote to announce “a Microsoft branded cell phone.” The reports took on a life of their own and spread unchecked across the Internet until today when Gizmodo quoted Brian Seitz, Zune’s Group Manager as saying there’s “No Zune phone at CES.”

But everyone is missing the point. Even if Microsoft were to announce a Zune phone, you have to consider whether it be big news. The simple answer: no. On the surface, a Zune phone implies a phone capable of playing music, and possibly buying music over-the-air. That’s old news. Right now, Apple’s iPhone is the one to beat and Microsoft has not released, or even hinted at what its response might be (other than vague hints at Windows Mobile 7 coming at some late date). What’s worse, is that other major players have—Google (NSDQ: GOOG) has its Android operating system; Research In Motion, for better or for worse, has released its first touchscreen, the Blackberry Storm, and Nokia (NYSE: NOK) has unveiled the N97, which has to die-for features such as a touchscreen, a full keyboard and tight integration with social networks. Even Nokia was bashed for being late to the game because the phone won’t come out until next year. Consider for a minute what the response will be when Microsoft finally gets around to launching something new?

I’d argue that in order for Microsoft to impress the audience at CES, it will have to do more than release a Zune phone. What people are looking for is a much broader announcement that either incorporates a new operating system, or a new user interface that easily allows consumers and business employees alike to do things that are in high demand today, like access the Web, applications and multimedia. To be sure, Windows Mobile phones do that today, but it’s not in a package that consumers are finding accessible. Most likely, if Microsoft were to do something like this, it would rely heavily on its acquisition of Danger, the company known for its popular and consumer-friendly Sidekick. Will an announcement like that be ready for CES? Who knows?