[Russ Smith]

Well Pony already made my first reaction: " it's not really at the bottom of the market-share heap."

Still, I think Microsoft could do a bit more. First, they could get their name out there. Linksys is now being marketed as "Linksys by Cisco" even though nothing really has changed. If MS could get it's OEMs to say "X1 with Windows Mobile", it could help with the mind-share issue. (Once people realize all the cool devices that start with WM...)

Second, because there is some real competition from the iPhone in particular. Microsoft should devote more R&D resources to speed up development. The more times competitors have to scramble to add features that WM already has, the better for WM. While quietly adding in some "us-too" features, MS should leverage those points where it's still in the lead. One such would be memory and i/o capabilities.

Finally, MS either needs to beef up things like Pocket Word, Excel, Outlook, Media Player and IE or just open the door further for the real alternatives like SoftMaker Office, Opera Mobile, and CorePlayer/Pocket TV. Along with the capabilities of adding hardware like full-sized keyboards and (on some units) screens, WM could become a real laptop replacement OS for low to mid-range needs.