[citation][nom]freggo[/nom]Why would they use a Version 7.8 for that. Isn't that creating more confusion to end users that you would want?I mean all day long we get bombarded with Win 8 this and Win 8 that...and then out of a sudden there is a Phone with Windows 7.8 on it.Sounds like last years model being unloaded to the uninformed masses.[/citation]Wow, comprehension fail. They're not unloading WP7 devices "to the uninformed masses". This is a software update for existing WP7 devices. These WP7 phones lack the memory and CPU horsepower to handle the beefier (NT kernel based) WP8. So for those who own a WP7 device and aren't eligible for an upgrade yet, this is a nice free software update.
They'd rather sell WP8 devices. But they're still releasing updates for WP7 devices. This could also be good for countries where phones are costly. A basic entry-level WP7 phone would be much much cheaper than any WP8 model. So this update is nice for them too.