I read
this article about the partnership on BBC. I think it's very well written, good article and thank you, Preston, for it!
Yes, this, in my opinion, and I'm working in the New Media industry, is an act of desperation from both parties.
The Windows 7 phones have, and rightly so, not sold very well. This can be blamed on the marketing and the better marketing of the competitors, but that's just a cheap excuse.
I was always very fond of my Nokia phones, they simply work and keep on working, so that's a plus. On the other hand, I haven't owned a Nokia in over 7 years, cause their phones don't have the features you expect today.
I remember when I was in a Nokia store, back in the days when they actually existed, and asked for a phone with MP3 player. "Oh, people don't want to have phones that play MP3s", I was told - despite me being the customer. Thanks, dear shop employee, for reminding me what I actually want.
Anybody that has had a Windows phone will have had experience with the issues of a Windows phone: slow, crashing, clunky sync and yes: SLOW, CRASHING! I nearly tossed my HTC Windows phone in the Thames one day.
So this partnership is really a partnership out of desperation:
Windows wants phones that people know are reliable - Nokia wants phones that are in the 21 century (and yes, I know there is a huge Symbian market)
Unfortunately (or fortunately), both will fail. Android is the best selling platform at the moment and will remain exactly that. I have and will continue to recommend ANYONE to ditch their phones and go for Android, cause it's free, fast, open-source and WORKS very, very well