What MS lacks is the complete package. The OS is great, it's incredibly snappy and responsive - much moreso than Android, and the only player that can give iOS a run for its performance money.
But so far all the hardware we've seen out of MS's camp has been me-too almost-clones of existing Android devices. None of the hardware have contained any features or industry design that would really make it desireable.
MSFT desperately needs a piece of hardware to act as WP7's flagship - something with the build quality and design quality of the iPhone 4. A real piece of art people can hold in their hands - IMO this would be the ticket to MS having a fighting chance in the smartphone wars.
They also desperately need to stop marketing in-house. Microsoft blows at marketing, and everything they do in-house falls flat on its face, and so far everyone they hire from the outside seems to suck equally as much (if not worse. Seinfeld?). Microsoft desperately needs to get its marketing act together.
