Microsoft needs a home run with Windows 7 Mobile, and from what I've seen, I'm not impressed. When the original iPhone was released it didn't do multi-tasking and was quite limited in what it was allowed to do. You can read Paul Thurrott's review of the iPhone here http://www.winsupersite.com/reviews/iphone.asp
Now Paul is giving the Windows 7 Mobile phone glowing reviews. On several Windows Weekly Podcasts Paul has mentioned time and time again how great this windows 7 mobile is. I know Paul is a Microsoft "Fan Boy" and I will reserve judgment until I see a device for myself. To be fair I am not expecting much out of Microsoft, with the amount of "Success" (Yes I use that term loosely) they have had with the Zune, I don't see Microsoft having much success in the mobile phone space. I do feel however if you critized a phone from a different manufacture for not having something when it was launched then you turn around and say it's great that this phone is great even without this feature your being a bit hypocritical (or just being a fanboy). As far as I'm concerned Microsoft is 2 - 3 years behind on the mobile platform.
From what I've seen Microsoft needs a home run and it looks like they hit a single. I'm not expecting much, I'm expecting to see some kind of mash up and copying of Android, and iOS. Needless to say it is going to be wired. The best example of the Microsoft's Windows 7 Release would have been the ill-fated Kin which Microsoft kill very shortly after launch; probably creating some sort of record for the shortest product life span.If Microsoft wants a successful product they are going to need all these features.Video Playback - .mp4, .mkv, and .wmv
Audio Playback - .mp3, .aac, and .wma
A Really Great photo editor and management system
A really slick mobile browser (Were going to see how ie 9 does on mobile)
IT MUST have office or a light version of it.
It must have an cheap or free way for developers to make apps for the platform (If you charge they will not come)Even with all that it's going to be hard to convince handset manufactures to go with Windows mobile when you can get Android (for Free). Android also has a 2 year head start on Windows Mobile.I have a feeling that like the Zune in the portable music industry, Microsoft with end up with a low percentage of the market share, and they will probably be just fine with that.