You just answered your own question. http://t-machine.org/index.php/2010/06/13/you-just-answered-your-own-question/ History repeats itself.
Too many cooks in the kitchen. Lack of focus.
The problem here with MS’s mobile/hand held/mp3 devices, is that they waited too long to enter the market. The products would have been fine years ago, but now they have fallen behind a bit, and they are going to struggle to catch up.
The Zune HD is a great device, but it launched about 2 years too late. It’s a single function device, in an era where that concept is outdated. The mainstream now carries around multifunction devices which are mp3 players, cameras, phones, and other things all wrapped in a tiny box. Despite being a good product, it had limited appeal in the multifunction device era.
So Windows Mobile 7 / WP7 is part of catching up to that market. They now have the multi function devices with great dev tools. But this new market is much more competitive. I expect them to fumble a few times. In 2 or 3 product generations, they will have a mobile phone / multi-function device product on par with the market leaders.