Wouldn't this make a successful iCloud even more embarrassing for Microsoft? They have the technology, but can't market it or make it easy for consumers to use?
In the current release, contacts are automatically synced, I'm not sure about calendars, and photos, video and I think office can be set to automatically sync.
From my understanding there is deeper integration in the next release (Mango).
So Microsoft is there and doing it, but they aren't competing in the same marketing space as Apple, and it seems few people know Windows Phone even exists.