The worst news about this phone is the web browser: IE7 based with IE8 technology. IE7's still-buggy, slow rendering; glacial Javascript performance; no support for forward-thinking web technologies ("HTML5", canvas or webGL, CSS3). I hope this doesn't take off, or this will ruin the currently fun, Webkit-based mobile web development for modern smartphones..
Also, from a user's perspective: no Flash (at least initially) OR HTML5 video tag support? It's like Microsoft's totally missed the last few years of mobile phone flamewars.