“Steve Ballmer may or may not be right about Windows Phone 7, but he’s right about smartphones–and he’s definitely not deranged.”
PS Harry elaborates better than this only comment!
Of course it is true that only between 17% and 28% of people living in urban areas already own a smartphone, and that is a big but negligible number.
And yes, WP7 is appealing to late adopters, not to overturn iPhone or Android lovers.
And yes, Microsoft has a true story of getting it right, eventually (usually on its third release?).
Now that they have cracked the UI, getting something that people can use, and are at least on par in the operators commitment, we’ll see if the apps (eg the developers, the ISV communities) will start increasing the overall value of the platform.