Given how MS effectively osborned Nokia's flagship Lumia series by refusing to upgrade it to Windows 8, Nokia has no credibility left.
(Note: I don't own a Lumia, and I'd be wary now)
Phone contract runs for up to three years, and people who paid for the top-of-the-line phone are going to feel regret every time they make a call for the next three years. From a reputational standpoint, Elop has burned his platform another time.
Does this really matter? Hardly anyone bought the Lumia. For a device with practically zero traction, it makes sense for Microsoft to rapidly iterate the product until it's something consumers want (I don't think Windows Phone 8 will do that but "hang on to the paltry few Lumia customers we have now" should be priority #52495394 for Microsoft right now).
It isn't bad for Microsoft. It is bad for Nokia. The customers who are prepared to spend top money with a brand obviously has some affinity for it. These are the people a company needs when it goes through difficult times. The last thing a company should do is to alienate their best customers.
(Note: I don't own a Lumia, and I'd be wary now)
Phone contract runs for up to three years, and people who paid for the top-of-the-line phone are going to feel regret every time they make a call for the next three years. From a reputational standpoint, Elop has burned his platform another time.