We will never know for sure. But that's my theory and if you look at the failures of Nokia Software [Symbian, Meego, Qt (sure Qt has made compelling apps like Skype and VLC but nothing mobile and when has anything cross-platform beside HTML, CSS and JS produced compelling experiences? and QML had potential but was beta), etc. ; only Ovi Maps is great, IMHO all other Ovi services and software were failures] it makes sense to believe that.
I choose to believe that there were and are Nokia folks who can do 21st century mobile experiences but they were let down by upper management and leaders (all leaders who were involved in the total Nokia mobile experience prior to February 11 should go in my armchair CEO opinion).
Perhaps Nokia with this WP7 aliance can pull it off. But just like Nortel whose leadership never really moved from their circuit switched and transmission mentality to the Internet mentality, I don't think the Nokia leaders can pull this one off. Love to be proven wrong by a resurgent "non RF, non embedded software" mindset Nokia that somehow manages (after a dark "interregnum" of WP7) to surge forward with something that is truly a compelling and unique mobile experience that I would pay my own money for.
Until then my money will go to other platforms like iPhone, Android and in the future hopefully WebOS.