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I'm sure Windows Mobile 7 is a good OS and you have quality manufacturers like HTC making phones for the platform. Windows Mobile 7 is never going to take off though. Android is the darling of the "I am a PC" crowd. It's open-source but unlike Linux it's accessible and "cool enough" to not just be for nerds and has strong app support. Maybe things would have been different if Microsoft beat Google to the punch or released WM7 around the same time as Android.

Also Android OS is already in first place as far as smartphone OS market share goes. http://www.smartcompany.com.au/information-technology/20110601-android-market-share-drops-in-us.html and apparently Android market share is starting to peak out (doesn't sound like good news for a platform that is expected to keep growing. Maybe it's because of the new White iPhone. lol). It was actually at 37% in the US but it's now down to 36% while iPhone is at only 26% and Blackberry at 23%. Windows Mobile 7 is only at 1% (but pre-7 Windows Mobile is at 9%). If you count iOS smart devices altogether vs. Android smart devices, iOS smart devices shipped like more than double. But shipments are not the same as active users (many people replaced their old iOS devices) so it's unclear what the smart device market share is like.