That and the fact WP7 still doesn't support less than WVGA screens really makes me question how Nokia is going to compete at the low end with WP7. Honestly I think a big part of the threat to them is not even the "smartphone" market but rather that their low to mid range phones where all their volume comes from are going to get knocked out by Android.
Fair enough. The N9 will ship with a 1GHz processor, if rumors are to be believed, So I'm guessing that will their first Windows 7 platform, unless they're building something W7 specific from the ground up.