Damn. No wonder people didn't buy Windows Phone 7. Glad they rectified some of this for 8, but it might well be too little too late.
Well it actually worked out ok. The biggest issues were that in an era of 16gb/32 gb handsets being common, it was hard to find many Win7 handsets above 8gb.
And the biggest thing was the apps. Microsoft really f*cked it on that one. They really pushed the easy development, gave away SDKs and free phones to developers, and then saw fit to charge around 4-6 times more for the same app than Apple. 79p for Angry Birds, or £3.99? When apps are such a big draw to the iPhone, you can see how greedy and short sighted that was. Hopefully they're going to learn their lesson, I've noticed some apps already beiing lowered in price.
Aside from that though it's a really solid OS, I really dislike Android, and the iPhone isn't for me.