It was almost as if WordPress had decided to abandon their initial efforts to create a mobile interface to both WordPress.com and self hosted WordPress blogs.
The last update, version 1.4, came out in October 2011 and saw no updates over that period until this 1.7 release.
Maybe they were waiting for Windows Phone 8 to come out as this update supports the new version of the Windows Phone OS.
Other things that have been added in this update includes support for local drafts, various post formats, better image placement and the aforementioned Windows Phone 8.
Note: This post was created and posted using the WordPress for Windows Phone app.