Here’s Microsoft’s Joe Belfiore demoing Mango, the next release of Windows Phone 7. Looks interesting–especially if the version of IE does indeed feel more like IE9 for Windows than it does like Windows Phone 7′s IE, which is one of the operating system’s weak spots.
As Jared wrote recently, Microsoft is moving Windows Phone in a contrarian direction, focusing less on apps and more on building features like search and social stuff directly into the OS. It could work–and at least it’ll give Windows Phone its own distinct personality. But it does multiply the number of things that Microsoft needs to nail to make the OS appealing.