@ojas "You know, Microsoft and Nokia's problems is that they keep talking about how good the camera on their phones are, without realising that their OS is equally shit."
By what metric are you measuring the OS?
Stability? The one thing WP7 truly excelled at right from the start was the fact that it was more stable than iOS and Android. WP8 may not quite equal WP8 in this regard, but it still maintains its standing against iOS and Android.
Aesthetics? WP8 may not appeal to some people in regard to appearance, but the system is still effective at organizing and working the phone. Arguably better than their competition. Also, live tiles can be pretty useful. This is arguably the weakest point of WP8, though it should be noted that many Android users have adopted the WP theme for their Android devices.
Ease of use? Logically, the WP8 menu system makes sense. A home page with customizable tiles that you can organize how ever you want. Add in a list of available applications that allows for alphabetical oriented jumping to points in the list as well as an easy access search feature. Then add in a rather well thought out people hub and you get a system that very few people I've shown it to has had any trouble working. Of those that had issue, the real issue was their refusal to actually try a non-Apple device. Though, my tech-phobic father did have legitimate issues with it, ... , and Android, and iOS, and Blackberry.
Applications? This isn't really a flaw of the OS, but it does bear mentioning. The library isn't as large as that of iOS or Android, but it is fairly sizable. Most of the big hitters are available on WP, though there are still some significant standouts. Lack of a needed app is the single most relevant reason to avoid WP8. That said, the OS is pretty easy to develop for, so this isn't so much a problem with the OS as it is a problem with market share. Those who have spent significant amounts on apps wouldn't be fond of switching systems whether all their apps are available or not.
Hardware? Also, not an OS issue, but nonetheless interesting. While, WP8 devices aren't the equal of the very top end Android phones, neither are those Android phones their equal. It just depends on what is important to you. The top end Android phones are equipped with the latest and greatest SoCs. The top end Windows Phones are equipped with the latest and greatest optics. The SoCs in these phones are still modern and more than adequate even before you consider the inherent smoothness of the WP OS. Similarly, top end Android phones have optics that are more than adequate for their purposes. Nokia devices tend to be thick, but that is a tradeoff I'm willing to make for superior battery life. HTC has a nice slim option. Any way you look at it, though, WP gets a pass here as well.
Note: I'm not pro-MS. I don't think any company deserves loyalty. I simply believe there are plenty of reasons that justify iOS, Android, and WP8 over each other, but none of these systems can be considered bad in and of themselves. There are just situations where each is a bad fit for the application. Android may be the most flexible for me right now, but I can see the merits of WP8 devices as well.