Earlier quoted context omitted.
The worst mistake they could make is to kill it the way they killed the Zune. They're never going to launch a day one, version one product which will displace the iPhone or Android, it's going to take time and investment. The real target should be that they've got 25%+ market share in three years time. That should be what they're aiming for rather than a success this year. People replace phones every 12 - 24 months a…
They didn't kill the Zune. WP7 is basically a superset of Zune - same service for music/video, same client software, (evolution/derivative of the) same UI. There're rumored to be phoneless WP7s in the works too.
But it was actually a pretty good and if they'd stuck at it I get the impression it could have done better than it did. Perhaps it will revive with WP7 (though I see the software is still under development which is good).