I care, but mostly because I've got a lot of WM apps and really don't want to re-purchase them for other platforms. MS really has dropped the ball on WM and is now frantically playing catch-up. Of course, I still like WM overall because it's very flexible, but am saddened that MS has fallen so far behind and really, really missed the opportunity they had w/ the vast number of users on their devices.
Be interesting to see how this ultimately plays out, but hoping MS will really make major changes in WM7 so they don't completely drop out of the market. I definitely don't want to hand this market over to Apple, even if the iPhone has a great UI. It's pretty clear that the iPhone is catching-up with features that have been available on other platforms for some time (but of course, they're new and revolutionary when Apple implements them
).
I'd also agree that MS needs to update some of those core apps rather than leaving "opportunities" for 3rd parties. New internet program, new media player, touch or stylus friendly - all of these would really help. If they can integrate their Zune Marketplace into the system somehow, that would also help.