Wm7 is windows last chance. Both at&t and T-Mobile were considering dropping all windows phones. So, that tells me that it wm7 fails, like all past version of Wm, then those companies won't carry Wm phones anymore.
As for captivate v iPhone, cap out sells IP4 3 - 1. I don't get where people claim that iPhone is "polished." Simple to use, yes, but still very buggy. The iPhone is like emo style or bubblegum pop music. They are trendy and do the job, but at some point you have to grow up and move to more adult things. Kind of like how Justin beber claims to be the Kurt Cobain of his generation.
Before I start, I'm not looking to get into an Android vs Apple war, want to make that clear. The iPhone is a phone that works out of the box. Does it have glitches, sure, like any other phone on the market today. But look at the overall picture, from the end user perspective (the average user). You have a phone that ties into iTunes, from iTunes you can download music, videos, movies, etc. and sync them with your phone all from one spot. This experience alone is light years ahead of Android, not to mention that Apple's App Market has some good quality apps. Apple does a better job of controlling what gets posted.
The other area Apple seems to have a slight lead is with the corporate world, there are a lot of iPhone users in the corporate world. When I attempted to use my Captivate in this environment, I ran into several minor issues. One of them being connecting to Cisco WiFi at work, was never able to get the phone to work. This issue has been discussed in the forum before and I don't think anyone has found a way around it, hopefully, Froyo will fix that.
You also can't compare an iPhone 3G or 3Gs running IOS 4.1 to an iPhone4 running IOS 4.1, the difference is night and day. I know the older models are capable of running the newer OS with some limitations, as such is the case for the 3G, but from a performance perspective they are not up to par. The majority of the bugs and/or complaints you get today about this newer version of the OS comes from these users. The proximity and bluetooth issues have been resolved with 4.1 and 4.2 will ship in early November with even more fixes and goodies.
The nice thing about Android is that you can root and flash the phone with whatever ROM you choose to work with. Something the iPhone is not capable of matching in today's world. The additional flexibility is what catches the attention of many users who wish to experiment. With that said, this is a small portion of the end user market, most users are really just looking for a nice phone that works. The other thing I found frustrating with Android was the UI layered on top of the OS by phone vendors, adding to the overhead required to deploy an update or new OS.
I think Android will mature into a nice product, the potential is certainly there, unless Google drops the ball. I also hope Google creates some quality controls to monitor vendors that consume its products and force them to stay up to date as much as possible. If one is not careful, you can easily ruin the OS experience by simply going with the wrong hardware vendor, as such was the case for me with Samsung and the Captivate. The GPS issue drove me over the edge.