1. The only other horse is Android and then the market will be one iPhone and everything else Android. WP7 is like KDE4.0 and Windows Mobile is like KDE 3.5. It's going to take a little bit to get everything that was in the older version into the new one but a rewrite had to be done (unlike the "Symbian is forever" approach Nokia had).

Windows sales dipped because manufacturers stopped making WM6.5 phones and not too many began making WP7 phones. With Nokia, that changes. Nokia sales also dipped in 2009 and 2010 because of the outdated appearance of its software. With WP7 that's also about to change. I just don't see the gloom and doom. Sure it's going to be tough battling Google and Apple, but not any tougher than it was before. The partnership of Nokia and Microsoft definitely makes it a three horse race.