Windows Phone 7 has been on the market for less then a full quarter. It is a brand new OS, better on initial release then iOS 1.0 or Android 1.0. So stay calm. In time, people will see Windows Phone as an attractive alternative in the market.
RE point 1 and 3, Nokia did this already - it was supposed to be Maemo. They didn't go anywhere with it. They turned it into Meego. We know what happened with. Nokia failed MISERABLY in this regard.