I just threw my iPhone 4 away because this thing looks so excellent. Think Zune+Kin and then add AT&T as the launch network provider. I only wish they could have squared the edges a little more and made a less beautiful homescreen.
In all seriousness, Microsoft is going to spend boatloads of money on Windows Phone 7 so expect ads like this from now until Christmas. The one area where this OS will be able to compete is in gaming with its XBox Live connection. We’ll see if that’s enough to bring people over.