No doubt, I'm sure, the senior executives at Microsoft were pretty upset (with the latest Vista delay). Steven has a track record of shipping products (and he can) potentially take the reins and get the thing out the door and fix whatever process problems there are.
Microsoft has been able to keep this product secret for a year. For Microsoft, that's absolutely incredible.
Microsoft has taken a lot of effort developing the phone first.
There's no doubt that Microsoft has the potential to become a major force in the mobile space.
I don't think Microsoft plans on ceding this market to Apple or anyone else at this point in time. What that means in terms of tactical solutions, it's too early to tell. They're probably considering any number of different options.
It represents a big win for Apple and the Mac platform. But Apple doesn't represent a threat to AOL's business. Apple isn't a media company; it's not in online services. It's not the same threat as when Microsoft wanted interoperability.
It's a bigger deal in name than in substance, ... Microsoft added some bells and whistles, but it's not a dramatic release. Unless you have a pressing need for one of the specific features that were added, it's not a product that most users will want to upgrade to.