Does it however strategically affect WP7's strategic future?

Look, the way I see it, WP7 is barely months (weeks?) old. To expect HTML5 support when 'HTML5' is in still flux is silly. MS are still working on their desktop support for goodness sake.

Lack of copy-and-paste demonstrates clearly that MS couldn't get everything in to v1.0. And to impute strategic motives is reaching.