Microsoft definitely has a soft spot for blockiness and overly large fonts. There were doing this with the Kin too - I agree that it is overstyled and not the greatest interface from close-up.
Yeah, but at least it's Frutiger. I'm not a hardcore type nerd, but I remember that because it was the first thing about WinPhone7 that made me believe I might like it.
Microsoft has made some fairly nice fonts like Calibri, Consolas, Cambria etc. so the fact they went with a really good third-party font like Frutiger told me that "NIH", seemingly endemic to Microsoft product development, was not an issue. It was no guarantee, of course, but it was an indication that the team was making a product that was seriously designed instead of just checking off features.