We've seen it time and time again in electronics, there is only room for two or three competitors in a hardware business. Samsung and Apple have #1 and #2 tied up. The rest of the market is too small to support LG, Motorola, Sony, Nokia, RIM and others, so some of them have to die.
Nokia was stupid to give up their independent decision making to MS. I don't know which choice of Android, WP7 ( and don't forget MeeGo!) would have worked, but they got an executive handcuffed to MS and now they have no freedom to change their situation even if they could think of a solution. MS got a much better deal than Nokia did, WP7 would be dead if they didn't have them.
I think MeeGo could have worked. It was cool.