How are they fragmenting their product line? Would introducing MeeGo be fragmenting their product line? If not, then why is introducting WP7? Also they said they want to see it scaled down to lower-end devices, so it looks like thier vision is to see WP7 thoughout their product line, which is actually less of fragmentation than a Symbian/MeeGo lineup.
The 90s are over. The Microsoft conspiracies must end along with the "Soviet Union" conspiracies. Microsoft is not coming to get you. What do you imagine the CEO of Nokia is going to do with Nokia's patent portfolio? My guess is "use it", but I'm assuming yours is "destroy open source software!". I actually saw a post somewhere else suggesting that a problem playing a media file on openSUSE might be due to an intentional bug introduced by Novell on Microsoft's behalf to drive users away from Linux and into the arms of Windows 7.
Microsoft is struggling in the mobile market because it lacks design skills and hardware expertise Nokia has. Nokia is struggling because it lacks software expertise Microsoft has. This is synergy, not two losers.