Only the other day we were fielding rumors that Windows Mobile 6.6 would be the best Microsoft could do at Mobile World Congress this coming February, when along come Bloomberg with "a person familiar with the matter" who claims the company are considering demonstrating Windows Mobile 7 at the cellularly-obsessed show. According to their source, Microsoft haven't yet decided whether to put WM7 on the agenda; last we heard, the company intended to launch another interim version, Windows Mobile 6.6, which would add native support for capacitive touchscreens as found on the HTC HD2.
As you might expect, Microsoft themselves aren't saying anything conclusive about either their show plans or their launch-schedule for the upcoming smartphone OS revision. "We’re always working on future versions" said Microsoft spokesperson Debbie Anderson, "and have nothing new to announce."
It's arguable whether showing Windows Mobile 7 and simultaneously releasing version 6.6 would help or hinder Microsoft's prospects in the smartphone space. The latter would enable those handset manufacturers still on the WinMo boat to more easily release devices with capacitive touchscreens, which have risen in popularity and mindshare compared to traditional resistive panels; however users may be cautious to pick up a new smartphone based on WinMo 6.6 unless they know that they'll be able to upgrade to WinMo 7.