It does have multi touch and it does support pinch to zoom, those are basic requirements for any modern smart phone nowadays.
The UI is interesting, and very very smooth with no noticeable slow downs in any of the videos I have watched, however, it's also pretty boring looking. Some call it clean, some call it boring, I guess you can't please everyone. Just looking at the drab looking super basic keyboard makes the UI feel dated. I found the UI confusing at first, but after watching a bunch of videos, it does seem to make sense somewhat.
It's a brand new OS so I guess we should cut MS a break seeing that not all expected functionality is built in yet. They are also pretty shady about multitasking, saying that they are still evaluating the best implementation.
I do think it has a better future than Blackberry. Even the latest and greatest Blackberry looked like an old hat to me when it was launched, give me a WP7 phone over that any day! There will be lots of updates, there will be lots of apps, and I think MS is doing the right thing catering to just about everybody by making the OS solid for gaming, visual entertainment, music, and productivity. For the most part, especially considering how early it is in the game for them, they seem to have all the major areas covered. Add to that that you can pick from a great variety of hardware form factors, and MS has a good chance of winning a good chunk of the market.
Being a developer must be a great thing nowadays, you have 3 strong platforms to pick from. I just hope there wont' be too many exclusive deals where one game will only show up on one platform, or that other popular apps, are exclusive to just one platform. I don't think that will be the case Netflix since it's out on WP7 and iOS and has been announced for Android.
As far as the hardware goes, yeah, it's top of the line, as of this summer. All those phones are running Evo class hardware, no dual core processors yet and the like. I understand that it takes a while to crank those phones out and that the hardware guys didn't have a final built of WP7 in their hands for a long time yet, but it would have made the platform even more attractive if at least a few of the handsets had some next gen specs. Then again, seeing how fluid everything seems to run on the first crop of phones, maybe running next gen hardware right away isn't neccessary...yet.
All in all, I applaud MS for it's efforts, and I hope they will pretty up the UI after they get the bugs worked out and also add a bunch more features to the OS.
Will I run and trade in my Evo for a launch WP7 phone? Hell no? Will I have to decide between the next gen Sprint superphone being a WP7 or Android device? I doubt it, Google just has too much of a headstart. Would I switch to Verizon, or, if Apple made an iPhone for Sprint? Sure.....WHEN HELL FREEZES OVER!