I'm not sure I understand the limitation on app size. Doesn't this mean there won't be any stand along GPS solutions? Why does MS continue to try and limit WP7? From memory restrictions like this to lack of expandable storage to lack of background tasks it seems as though they are purposely trying to scare away any power users.
Is WP7 really just a pretty feature phone OS? Have we been thinking about it all wrong. Maybe MS isn't interested in the smart phone space, but instead trying to steal Nokia's dwindling market share?