Thanks very much for offering an alternate / anti-desktop perspective here.
I have to take issue a bit with your statement that we haven't improved the WM version in the last year, though; last 6 months would be more accurate. We haven't done much since 2.0.3 came out in July, but at least in the first 6 months after 2.0 came out we added quite a lot of new features; user dictionary import / export, "limit unlearned' in flashcards, instant handwriting recognition, and Organize Flashcards among others. Not to mention two very useful new dictionaries, A Chinese-English and the ABC English-Chinese. And 2.0.(8?) is bringing among other things a much faster user dictionary search index, some nice systemwide search improvements (no spaces before Pinyin syllables that begin with vowels, relevance sorting for E-C fulltext), and some more improvements to the flashcard spacing algorithm.
I'm not inclined to go too crazy with WM6.5 updates because, #1, I view it as a very transitional release (even a year from now I doubt there'll be many new phones shipped with it), and #2, most of the issues people are having with WM6.5 are actually with manufacturers' specific implementations of it; HTC Windows Mobile and Samsung Windows Mobile are almost two different dialects at this point. We're certainly trying to fix WM6.5 bugs - we're probably going to bite the bullet and finally implement our own "fake" scrollbars so that we can trick all of these damn TouchWiz/TouchFlo/etc hacks into not screwing up handwriting recognition by interpreting strokes as scroll gestures - but actually trying to take advantage of WM6.5 "features" seems like kind of a waste of effort.
But if Microsoft's WM7 announcement blows everyone away - and I think it will, it's not an exaggeration to say that Microsoft's entire future in the consumer space (outside of video games) depends on it - that opens up all kinds of lovely possibilities for future Pleco Windows Mobile releases; I'd just rather invest a bit more in low-level engine improvements now and less in Windows-Mobile-specific ones with a new and maybe-not-entirely-backwards-compatible version of WM on the horizon.