No one who has a clue doubts that WP7 will have all the 'buzz word' compliance that all the mobile OS's have, their problem is mindshare. Today, when people think of smartphones they think iPhone, Android and, to a lesser extent, Blackberry.
Nokia has already lost mindshare and in a desperate move to regain it, it has turned to WP7. Palm lost it because of very poor hardware and was absorbed by HP. Who knows how that will play out.
Microsoft will have to invest billions to gain that mindshare and there are no guarantees it will—even now that Nokia is putting it's full weight behind the effort. Now that Nokia is abandoning Meego and has relegated Symbian to feature phone status it is essentially starting from scratch as far as smartphones go. All of the mindshare and trust it once had it will have to be rebuilt from practically nothing.
Also, Microsofts marketing dept. needs to get a clue. Their commercials aren't sending the message they think they are. They are telling people that WP7 phones are not as engaging as the competition. People want to know that the phone that they are investing hundreds of dollars in is interesting and engaging. Not something you pull out of your pocket for a few seconds only to see what you friend tweeted about and then stick back in your pocket again.