With WP, its obviously nowhere near the status of Office but the point remains, if you give away all its exclusive features, who will buy it? And the result of that is, the marketshare continues in the single figures, devs dont target the platform (cross platform play with the Xbox), users dont buy it, and it continues in a vicious cycle. So yes, Microsoft wins but I cant see how in any way benefits or contributes to the growth of WP which is needed for it to be considered a major player and subsequently have access to all the apps that are always claimed to be missing.
I assume you live in the US - I do as well. I think we have the wrong viewpoint, as Americans. Microsoft knows they can't win in this country for a long time, so they're competing where they know they can win - developing countries. I think their goal is not to dominate the US, but the globe, and their way of doing that is by getting devices as cheap as possible into the hands of the most people possible. We may not have the lead on apps in the US, but in, I dunno, Italy or North Africa, we might soon.
Also, its obvious Microsoft is trying to spread a whole design philosophy across their devices, focusing on style, smoothness, and reliability rather than simple app exclusivity. They can't win that battle, so why fight? They're going to get people to switch who like the design of the OS, and they're going to completely dominate the "low end" of the market - people worldwide who are getting smartphones for the first time.
I think MS is viewing this as a decade-long battle, not a few years. Think about it this way - you're a developer in the US with 150 million iPhone users. But worldwide you only have 300 million users. Microsoft has only 10 million Windows Phone users in the US, but 500 million worldwide. See my point? They're going to still develop for the most users of the OS, and since its EASY to port an app from Windows 8 to Windows Phone and vice-versa, they'll potentially double their exposure cross-platform.
So if Microsoft can get some iPhone and Android users to buy Xbox and get into the ecosystem now, by releasing a few apps to them, why wouldn't they? They're still going to win in the end, and Windows Phone will still be the 2nd or 3rd most popular OS on the planet eventually.
Remember, its not JUST SmartPhones where MS competes - its most electronics - and there's probably a WHOLE lot more money in controlling the living room than there is in controlling the mobile world. And since nobody has come up with a good solution to control the TV space yet, MS is focusing on that first. Makes sense from a purely profit/business standpoint.