The fact it can't run with old 6.5 apps is a real turn off. Not much customization since it'll be like a Zune HD interface, only with phone calling mechanics.
I am sure they'll do something with the 6.5 app base. as far as i know its only a few hundred apps anyway. That was my biggest (negative) surprise when i got my phone (coming from an iPhone). Not sure the 6.5 issue is that big of an issue, bigger picture.
The number of apps is not true. Windows Marketplace has a limited number of apps, however, between free apps sites and websites like Handango, Handmark and others, I am guessing there are 50,000 or 200,000 windows mobile apps.
Developers have been developing for the platform for a long time.
I agree that it is a pain in butt for any paid apps, I am guessing I have $400 plus worth of paid apps, however, Microsoft has stated that any developer that can built apps for Windows will be able to built apps for Windows Phone. I think the quality and stability of app for Windows Phone 7 should be better.
For users who have existing devices, you will still have Windows 6.5.3 moving forward for 1 to 2 years.
I hope Microsoft and their ecosystem do a better job marketing the platform both to the carriers who sell the device and the end user who purchases the device.
In Canada, when you go to a phone store run by any of the carriers, the last device OS they offer is Windows Mobile, I would like to see customers offered a device based on their needs. The Windows Phone 7 series should do that, it's a easy to use platform, has awesome social networking and comes close or even eclipse the iPhone as far as ease of use.
Good Luck to MS and their carrier partners, if they can pull this off, they should get back to top 3, maybe even unseat # 1 or # 2 in smart phones.