If I wanted to would I be able to download songs in Zune Marketplace and have them work with my Fuze?
That depends…what format (MP3, WMA, Ogg Vorbis, FLAC) does the Zune Marketplace use? I wouldn’t expect it to use Ogg Vorbis or FLAC, probably WMA (most likely) or MP3. If it uses any of these four formats, then yes, you’ll be able to use your music on the Fuze.
It uses WMA DRM10, and yes its supported by the Fuze. Use WMP11 to sync the content to the Fuze, as Zune software does not recognize the Fuze.