Windows Phone 7 at MIX10

Microsoft has released further details about Windows 7 Phone - mostly from the developer side - at the Mix10 conference.   It continues to get a positive reception from the tech press.   For more detail take a look at various posts such as these on Engadget and Wired Gadget Lab. So I have 2 questions.  

These phones will be available before the end of the year (assuming Canadian cell cos debut them at the same time).  By then I'll only be 15 months into a 3 year contract on my phone.  So will there be any deals to be had for an early upgrade, or is my choice either pay a huge penalty (not happening) or wait another year and a half?   3 year terms are nasty.

This OS seems like a natural for an iPad competitor.  Windows 7 based versions are coming - how about a Windows Phone 7 based one?