Jason Perlow has come up with a suggestion for Microhoo--a Windows Mobile-based "Y!Phone" mated with a Wi-Fi-enabled Zune and some combination of Yahoo and MSN online services. Of course, it would also include a camera, a 3G wireless service and, as a differentiator from the iPhone, an integrated slide-out keyboard and support for Microsoft applications.
Jason posits that a Y!Phone priced at less than $300 with carrier incentives "could be the device that everyone truly wants." However, he also points out that a winning product would need more "sex appeal" than the current 3G Windows Mobile phones. Most importantly, the Windows Mobile interface needs to be completely revamped to take on the iPhone and whatever the Google/open-source Android sect develops.
It's a grand idea, but it's hard to see Microsoft or Yahoo or the combined companies pulling it off in the near term. All the mobile device companies are learning from the iPhone, and will eventually come up with similar functionality. But duplicating the fit and finish of a Steve Jobs device will take way more than combining a reinvented Windows Mobile-Silverlight software, a redefined Zune, and Yahoo and Microsoft services.