Android and WP7 make no difference for Nokia. In fact WP7 is clearly a better deal as they can talk and negotiate with Microsoft's moneyhat and they become by far the foremost WP7 phone maker. They bring a lot of hardware expertise and knowledge to Microsoft's camp. Going with Android, they'd just get to get bent.

If their choice was to get out of software and choose between WP7 and Android, WP7 is a much better idea.