I honestly believe that choosing Android instead of WP7 would be the über fail for Nokia in this situation. WP7 is bad enough considering the alternatives they have (or had?) in house, but at least it's an OS that nobody else seems to want (probably for a reason). So at least they have a chance to make it "their" OS, very much like Symbian is now considered a Nokia OS (which it never was).

Android is just too big now. Making an Android device is about as exciting as any laptop vendor launching a new model that runs windows.