@WebDuino: I think you might be misinterpreting what I am saying here.
I'm not trying to be a retro-grouch demanding that I get my GSM 6310 back (although I did love it) but rather that I doubt the real market is for flagship phones, or that it is driven from the top down. Not everyone needs (or even wants) an iPhone, Galaxy or high-end WP8, even though all the noise might be about them.
Nokia made their fortune with simple, basic, cheap phones, and it seems to me that securing that market with a lower-spec, smaller, cheaper phone, that still offers the facilities of WP8, would ensure they still have a market for their flagship models.
I suspect that by focusing on flagship models like the 920, Nokia is allowing their large and loyal customer base to slip through their fingers.