I will not say Nokia&M$ will beat down Google.
Since google's strength is its FREE services offered. Besides that a lot of apps in google market are free too.
But one thing I don't like about the android is that android has too many different customized versions by manufacturers. That's why we cannot get the new update instantly when google annouces new version of android.

So perhaps Nokia and M$ can learn from the weakness of android and avoid it in their own products. Do it like Apple. when announce the new version, all devices with same platform are allowed to update immediately.
Perhaps Nokia can also integrate its Ovi map to WP7 to offer FREE Offline GPS in their products. This is a great advantage over the other WP7 phones =)

I believe NokiaM$ will create competitive products/services in future to fight with iOS and Android.

lets be more realistic
alliance implied that m$ will offer some privileges to Nokia perhaps cheaper license ?
apart from that, let's see how much the similar spec of WP7 phone and android phone cost? they are not much different.
for instance, HTC Desire and HTC 7 Mozart, both of their retail price are not much different(HTC Desire is slightly cheaper). However, 7 Mozart is little bit better in term of spec.
http://www.gsmarena.com/compare.php3?idPho...0&idPhone2=3077

apart from that, WP7 is very smooth, is able to match with iOS.
one thing is lack in WP7 is openness.

This post has been edited by gstoh: Feb 12 2011, 12:45 PM

Nokia is not going to do that, symbian is weak, and Android is too common from different manufacturers. Since Nokia is left behind from other manufacturers in term of RnD and experience in Android. Furthermore, even in the same platform Android, Nokia is very hard to compete with its competitors, they can only compete in term of hardware features. This will cost Nokia a lot $$$ in order to gain the crown.
Besides that, I think Nokia is focusing on quality rather than quantity. if too many platforms for nokia to develop, it will cost Nokia a lot $ and the quality is still unknown. But I believe Nokia will still continue Symbian for mid and low end market.

WP7 is good choice for nokia.
why?
it is rare, motorola and SE don't even have a wp7 concept device. HTC LG and Samsung have it but the number of models is still limited. It means that there is still a chance for Nokia to compete with others in this platform.
the new wp7 provides smoother interface than Android. The limited features we knows such as copy and paste soon will be released too.
The update is controlled by M$ and hence you can get update directly from M$. I can see that M$ is also focusing on the wp7 quality. They are slowly releasing good quality features through update rather than throwing you a bunch of buggy features.

M$ is really returning now
http://www.engadget.com/2011/02/14/live-fr...west&refresh=60

as i said earlier, m$ is being conservative to the design of wp7, it will slowly release useful high-quality features one by one. =)
The update is very promising !