Every Windows Mobile product I've ever used stored applications and data in RAM. You lose battery power and you lose all your apps and data. That's just the beginning of the historically shite Windows Mobile experience.

It's the consensus among programmers that developing for Mac OS and the iPhone, is a pleasure as far as the frameworks and APIs go. I've only heard horror stories from developers and customers about .NET

The rumor du-jour is that Microsoft are looking at making their own handset. Likely OEM from HTC. IMO, this is the absolute only way they stand a chance at all in the market. Devices from third parties marketed under those third-party names are likely going to have a poor showing. Even with cumulative platform deployment courtesy of their OEMs, they're more than likely going to fall significantly short in overall market penetration, let alone touching the iPhone. Having untalented third parties touching your goodies can also lead to all sorts of other issues, including licensing woes for media. MS has been (rightfully) the sole Zune developer.

The closer together MS ties the new platform to the old, the greater their chances of failure. It's like they're tying their new shiny life raft to the hull of a sinking Titanic.