Yes... Mesh allows you to sync your folders to SkyDrive... however try to access those same files/folders from your WP7 device through Office, or the Photos hub.
Now... try the reverse. If you've a WP7 device, chances are photos you take are synced to SkyDrive... now on your desktop with Windows Live Mesh 2011 installed... try to find that same photo directory and then sync it to your local PC.
I don't have a WP7 so maybe I'm missing something. I seem to recall that the mesh beta included a visual list of machines that were part of your...uh...mesh. I'd swear one of the options for a machine type was 'phone'.
That said, the point of foldershare was to share a folder between multiple devices by p2p'ing a local copy of the files. Is there a mesh component on WP7? If not, then I would expect that it would be an arduous process to get to the files since they aren't on the phone itself.