N8 = a very smart tactical move.

This battle is not about numbers of units sold in the short-term, it's about winning (and keeping) hearts and minds long-term. Nokia cannot hope to take on the (percieved) market-leading iphone or the looming threat from Android until they have a ground-breaking OS and competitive GUI.

Top-end smartphones may only be a small sector of the market, but aspirational products help sell mid and down-market products. How long before apple start selling a cheap-entry-level device for the mass market?

As Monty would've put it; Meego, Symbian^4 and OVI Store are The Prize. N8, Maemo 5, Symbian^3 and N900 are all the bridges that have to be taken on the road to The Prize.

If you can't compete in one area you pick your fight and compete in another - you play to your own strengths. This focuses attention back on The Brand and pulls the rug out from under the competition.

This summer iphone 4(?) will be announced with (we understand) a 5MP camera - how's that going to look after N8?

Nokia have a solid history on hardware; camera quality, case finish, style, etc. Look how TV-out is being used to display Nokia products, this is one of the major USP's right now. N8 takes all the Good Stuff Nokia have right now and uses it to throw a curve ball.

A good plan, IMO.