Okay Per... apparently you're not the only one who completely misunderstood what I was saying, so sorry for that. Lets break this down...
Apple is perceived as the company who's products "just work". Whether that's objectively true or not doesn't matter because perception "is" reality), while Google is the entity who provides products and services that are cheap (the stuff anybody can afford, because nobody can beat "ad supported and free")....
Very few people love Windows. They use it because they must. If left to fend for themselves, most people would prefer an environment without Windows PCs, as most consider iOS and Android tablets and smartphones simpler (which they are, as they are appliances rather than full fledged computers)...
Specifically in regard to WP and W10M, MS has not provided anything which a majority of users would consider unique and/or exciting...
Thanks for your clarification a5.
You are basically trying argue that MS might as well give up on mobile because: 1) Apple is perceived as the company who's products "just work", 2) Google offers cheap or free ad supported products, 3) W10M has nothing unique to offer, 4) The public wants dumbed down mobile solutions, and 5) The vast majority (close to 300 million Windows 10 users + all other flavours of Windows) use it only because they have to.
Again, I have to say that I disagree with most of your and Mr. Thurrott's assumptions. Instead I would argue that Microsoft has a lot in their favour for the foreseeable future:
1) As you say, Apple is "perceived" as selling easy to use products. This was true 10 years ago, but no longer. Instead, as I stated earlier they could be pushing themselves into a corner where simplicity is starting to make their product too constrictive and often annoying to use because they lack some even basic functionality. This is a great opportunity for Microsoft, W10 and W10M are not only just as easy to use as any other OS's, but also far more functional.
2) The public is slowly starting to understand how Google makes its money, and importantly how scattered their mobile offering is. They have not yet indicated any clear path as to where they plan to go with Android and Chrome. This is a great opportunity for Microsoft. They take privacy very seriously (a must since they aim for both corporate and private clients), they have a clear path for their OS strategy and they have already reached their first goal in their path to one OS for all devices.
3) W10M certainly has something unique to offer. A future proof mobile OS which is not only integrated with their desktop offering, but actually using the core. The lines between phones, tablets, and laptops are getting increasingly thinner, and why would you not want to have a mobile device that can connect to a big screen and function just like a computer if it was possible. This is another great opportunity for Microsoft which is more than clear to them.
4) The whole and complete public does not want dumbed down solutions, and as mobile devices become increasingly more powerful and possible to use more like computers (for those that so wish) I think the ratio of people who want more than just a "simple appliance" will rapidly increase. Again, a great opportunity for Microsoft.
5) If the vast majority of people who use Windows do so because they have to, then why are many reluctant to move on from Windows 7 - and actively told not to by industry pundits like Paul Thurrott - when W10 is so much more fun to use. You used the word "perception", and that is what this boils down to. Many people (and the media) have the "perception" that Windows is a boring and complicated workhorse. On an objective level that is simply not true, which should be seen as yet another opportunity for Microsoft. Perceptions are not eternally static.
Sustaining a competitive software ecosystem requires that MS extracts from the market an amount of money that is at least somewhat comparable to that of their competitors. MS is nowhere close to that point.
I think it is fair to say that MS is doing well enough that we don't have to worry about their budgeting and their knowledge of fundamental economics.
And signing off I would like to point out that there are no battles and no war going on here. It is not about all or nothing. Microsoft is a very successful technology company, and their mobile offerings only amount to a small part of their total portfolio.