I agree with Arstechnica except the last sentence. A Nokia phone similar to the N8 (same camera, same build quality, same radio bands, amoled screen etc) could be a hit all over the world with tremendous long term value. Ordinary folks in Europe used to Nokia would think, oh cool - nice OS. Ordinary folks in North America would think, oh nice - real quality HW with MS Logo. The down-side; there would be no going back for Nokia - ever (at least not in the foreseeable future), and they would be firmly in the hands of MS.

I don't think it will happen like that, although I do think something is going on between Nokia and MS. I think MS will take over the responsibility of Symbian, the core OS, and we will see a mix of MS and OVI blending together. Then we will see a "new" OS based on WM7, but with Qt. MS will eventually deliver both Symbian and WM7 core OS'es to Nokia, and Nokia will maintain the UX themselves, at least for some time. At the same time MS services will be tightly integrated into all Symbian devices. I think we will see lots of strange things before it eventually settles down on some preferred solutions both with Symbian and WM (but they will both be called WM by then). This is the only way MS can compete with MeeGo, and Nokia really doesn't care if they use Linux or WM, as long as they can put Qt on it, a Qt they have full control of. As a core OS for a smartphone though, WM is much better than Linux. The benefit for Nokia: they can focus on the core business of making phones (including UX) and developing online services. The benefit for MS: potentially world leading OS for phones and mobile devices, including online services with Nokia. - or something similar but i think we will find out sooner rather than later.