The Windows Mobile 7 devices are coming (maybe). The LG Monaco (AKA Pico) is reportedly headed to AT&T and appears to be such a device.
In terms of specifications, it is expected to be powered by a Qualcomm QSD8650 processor (also known as Snapdragon) and Windows Mobile 7. It should come with quad-band GSM/GPRS/EDGE and tri-band HSDPA connectivity, a 3.2-inch WVGA display, a slide-out QWERTY keyboard, A-GPS, Wi-Fi, Bluetooth 2.1+EDR, a 5MP camera with autofocus, a microSDHC card slot (supporting cards up to 16GB) and a 1500mAh battery. It will ship with a pico-projector accessory.
The LG Monaco also does not meet recently leaked Windows Mobile 7 Chassis 1 specifications due to its display. Whether it meets specifications for another type of chassis remains to be seen though.
AT&T indicates a September 2009 launch but this is likely old information. Either the LG Monaco will slip into 2010 (when Windows Mobile 7 is expected) or it will launch with Windows Mobile 6.5.