IDK, I only know I have so many free games on XBL on my WP7. And many more new games very day. I have to check regularly from the "ranked free" section. I don't look at new or paid section, too much work (games only). I rare browse apps, I know what I want and download it directly.
A lot of people are still waiting for the NoDo update though. Copy&Paste is kinda big. And it usually takes second gen OS to convince people to buy it. You know, like some people don't buy Win98, they buy Win98 SE (that was me). I was late adopter to WinXP to (I was hating XP kiddy GUI).
Just give it time. At least all the major companies already have apps on WP7, which is important.