Take Offline

"But, the public perception of fewer apps, and weaker hardware is a problem for Windows Phone 7."

That and they are third into the market. Market inertia is VERY difficult to overcome without throwing LOTS of money at it AND having a VERY good product. Until Microsoft decides to throw LOTS more money at this, it isn't going to go anywhere because the competition is entrenched and VERY good. There just simply isn't that much enticement to switch - no matter how much the MIcrosoft fanboys want it to happen.