I'm gonna get flamed... but the reason why all the PPC phones suck is because they all run WM. I'm not saying there is anything better out there now - but if Apple opens up the iPhone to run 3rd party applications its going to be a great device and truly hard for anybody to beat*.
What has to happen for a good PPC device is Microsoft has to make their own hardware like they did with the Zune. Oh, and they also have to learn how to make decent interfaces. Vista and WM have horrible UIs from a usability perspective.**
What's really interesting is that MS is cutting edge when it comes to usability research and UI design but none of it makes it into their products. I think the reason for that is - the business/marketing people make the decisions not the engineers. Where at Apple the people calling the final shots are UI folks and engineers not business/marketing drones.
*Yes, a hardware keyboard would be nice but the iPhone was designed from the beginning to be a touch device. And people don't seem to be having a problem with the HTC Touch not having a keyboard when we all know WM wasn't/isn't designed to be used with a fingertip. On top of that - how many programs in WM don't shrink up when the on-screen keyboard pops up?
**Vista is another thing all together. Who ever was responsible for the 2 paragraphs of text next to every setting, explaining what that setting does, has a fundamental misunderstanding of UI design and should be fired.
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