Quality, in fact, was the overriding theme of what Joe had to say. According to him, having a better user experience is what will differentiate Windows Phone from the competition, not extreme specs or barrel-scraping prices.
This, plus photos I have seen of the Nokia Lumia 800 Windows Phone in use (which appears to be the first reasonably sized phone since the iPhone) have me hopeful for Microsoft’s success in the space.
Quote is from The Verge, this post referencing an interview with Joe Belfiore, VP of Windows Phone.