@AndyC:

Not to mention most people dont go watching microsoft press events Smiley seriously, this is no diffrent than the couple of months between an apple announcement and the actual release..

for the avare joe who dont drop hundreds of bucks on launch day for every new phone, this means nothing.. probably carriers and phone vendors will drop prices on current WP devices [again, just as they do when the next gen of any device is announced] and with 7.8, normal people will consider their wp phones to be pretty much on par with wp8.. not to mention nokia are uppdating their wp7   apps as well.

As other have said already, i think microsoft is beeing honest with the 7.8 update. they could just as well have called that update "windows 8" and just claimed the new hardware enables some more features..