Windows Phone 7 has been on the market for less then a full quarter. It is a brand new OS, better on initial release then iOS 1.0 or Android 1.0. So stay calm. In time, people will see Windows Phone as an attractive alternative in the market.
RE point 1 and 3, Nokia did this already - it was supposed to be Maemo. They didn't go anywhere with it. They turned it into Meego. We know what happened with. Nokia failed MISERABLY in this regard.
App ecosystem, better camera software, better social integration, better notifications. These are all better. It's a given that WP7 1.0 is competing with the most recent revs of iOS and Android, but the gap of what they have to make up is much smaller, which works to Microsoft's advantage, if they're willing to put resources into iterating quickly (which they haven't so far).
RE point 1 and 3, Nokia did this already - it was supposed to be Maemo. They didn't go anywhere with it. They turned it into Meego. We know what happened with. Nokia failed MISERABLY in this regard.