LG has decided to stop making WP7 phones, citing lack of consumer interest:
The company will continue to research future mobile products based around Windows, but for now they're focussing on the Android market.
Granted, WP7 isn't doing so well, but I think this one of these cases of the OEM looking for someone else to blame. LG made a phone that was pretty ordinary two years ago and then failed to market it since. Manufacturers have to realise that there's more to making a successful mobile product than slapping an OS on it and hoping for the best.
And given LG's efforts to date, I'm not sure they're going to fair any better in an overcrowded Android market place.