That seems a little harsh. While I think today's announcement by Nokia is disappointing I don't think it is the "end of the world" kind of scenario like you're making it out to be.
If anything the Mango update and Skype were the two biggest missing pieces of the WP7 jigsaw. Hopefully Microsoft will roll out Skype by Christmas. Windows 8 will be a further positive shot in the arm (with similar UI style and likely better integration and cloud services).
I think Microsoft's gains in this space will be slow and gradual but frankly the future looks bright given how similar the iPhone and Android are. Android ultimately boils down to a poor man's iPhone, same UI arrangement, same features, same concepts. So the market is: "iPhone-like device or WP7."
I keep hearing about LTE but it is silly. Barely any network supports it and very few normal (non-geek) users even know or care about it. Given that people replace their phones every three to four years, it doesn't make sense to me for this generation of phones to support LTE. We're at least two years away from that.
I will agree that Microsoft often lacks a vision. They seem from an outsider's perspective to just kind of do random things and see what works. For now, even with a poor vision for the future, WP7 is "fine." It isn't an iPhone and it likely won't be.