Nathan over at InsideMicrosoft has the scoop on WM7, which Microsoft is currently developing and is rumored to have a strong focus on touch gestures.
Microsoft is currently developing Windows Mobile 7, the first
revolutionary change to its mobile device operating system. Recently, I
was given a document by a source inside Microsoft that details the
touch and gesture plans for Mobile 7. This document is a confidential
internal use only document, used to explain the plans for Mobile 7, and
contains well over a hundred pages of designs, ideas, and changes to
the way we interact with our mobile devices.
Windows Mobile 7 will dramatically change the way we use mobile devices. It will emphasize the use of touch on the device, as well as motion gestures created by using the device. It is, absolutely, Microsoft’s effort to beat back the iPhone, and the iPhone is referenced several times in the document.
The release date according to the document is "2009", but I bet it will be closer towards the end of 2009, possibly pushing even into 2010.
Microsoft emulating Apple – who says history does not repeat itself?