About the OS, Microsoft tries to attract people with the interface from "Zune", but I think that Windows Mobile 7 is going to be quite similar to Windows Mobile 6. Considering this, even if Microsoft tried to do a great impression at MWC, the new OS will still be pretty buggy, compatible with a low number of applications, and stylus-designed. The only new thing that is probably good related to Windows Mobile 7 is flash support, which Adobe announced that is working on.
LG Apollo is expected to come in September, while HTC Obsession is expected in October. I'm really interested what are they going to be capable of, but they will surely NEVER beat Android with their Windows Mobile 7.