Is this a winner for Microsoft?  At this point, who knows?  WP7 phones won't be available until late 2010.  I believe it is not too late for Microsoft to be a viable player in the smartphone market.  Apple has yet to monopolize the market in the way that Microsoft did with desktop Windows, and it appears that Apple's competitors are finally getting organized (Android, Open Handset Alliance, Palm webOS, Flash 10.1, etc.).  With that said, I've seen this scenario before: a company demos some brilliant technology only to epically fail to market the product.

A lot can happen between now and the 2010 holiday season.  If Microsoft can execute what was demonstrated today, and Apple doesn't re-revolutionize the iPhone between then and now, Microsoft might have a chance to get back into the game.