Maybe I'm less anti-Microsoft than most (disclaimer: I worked there for a summer), but since WPS7 will be out before my current iPhone/AT&T contract ends, my plan is to switch to a Windows phone. I think the UI looks great (though practical usability is still in question), and I've always preferred Outlook to Gmail. My main gripe would be using an IE7-based browser, but as long as I can install Opera Mobile that shouldn't matter. I also wouldn't mind switching to the Zune platform - I've heard good things about the Zune desktop client, and iTunes has numerous problems. (I don't think Android offers any support for smart playlists, which would be a real pain for me.) I guess it might be obvious from the above that doing the core tasks well (email, browsing, music) is more important to me than how many googols of apps are available...plus, by using XNA as a dev platform, I suspect the learning curve for creating WPS7 apps will be lower than for iPhone/Android, because there are already tons of XNA devs.
Of course, this is all predicated on WPS7 meeting expectations, the pretty UI actually being usable, etc. Otherwise, Android. So I guess the point is that, at least in my case, Microsoft is still in the game, but they have only one chance to deliver.