Alright, keep your socks on here, this is as noncommittal a statement as Redmond can make on the matter, but when asked directly about the likelihood and possibility of Windows Mobile 6.5 phones being transitioned to the new hotness that is Windows Phone 7 Series, Microsoft's Alex Reeve had this to say:
It's early days yet, and that's really for our hardware partners to think about.
As the Director of the company's UK Mobile Business Group, he's well positioned to know what's going to happen after said early days, and it's encouraging to hear that at least Microsoft won't be putting up any barriers to that HD2 upgrade we're all dreaming about. After all, the Chassis 1 specs we keep hearing about tend to sound an awful lot like HTC's 1GHz Snapdragon-powered bad self, so let's keep our fingers crossed and our minds open.

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Microsoft: Windows Phone 7 upgrades will be possible, up to OEMs to make them happen