They shouldn't have attached the "Windows" brand to their phone. Windows is a desktop operating system. It has a popularized reputation (warranted or not) for being unwieldy, crashing, being expensive, and mostly dedicated to the accomplishment of boring or undesirable tasks like work, writing papers, using Office, etc. They should have created a new brand for the phone.
Having a "Windows Phone" from Microsoft is sort of like IBM coming out with a social networking site called "The IBM Human Interaction System" and then marketing it to young people as hip and cool. There is an emotional and/or psychological disconnect between the nature of the product and the mental conception people have of the brand.
Even though it's stupid, when I see the Android ads I think "oh cool, an ANDROID! I wonder what it can do? It looks futuristic. I kind of want one." (note: I don't have a smart phone because I think they are stupid.) However, when I hear the word "Windows Phone", it makes me feel like getting one would be like keeping a chunk of my job in pocket. No thanks.