Last night, a Windows Phone 7 prototype appeared on the Engadget Show along with the new BlackBerry Torch and BlackBerry 6 operating system. Joshua Topolsky compared the web browser on “the best BlackBerry ever” to the Internet Explorer on the unfinished Windows Phone 7 running on demo hardware. Unfortunately for BlackBerry, Windows Phone 7 was clearly superior. Even though the BlackBerry was using 3G and Windows Phone 7 was using WiFi, Windows Phone 7 was much faster and responsive when zooming, panning, and re-rendering content while the BlackBerry appeared almost unusable. Our experience with the BlackBerry Torch at the launch event was similar. Meanwhile, Josh, Nilay, and Paul felt that Windows Phone 7 was much more impressive than anything that was previously referred to as a Windows Phone. It was also fun to see Joshua Topolsky’s Xbox Live Avatar which looked just like him and was wearing the same suit as he had on during the show.

If you missed the Engadget show live stream last night, they should be posting an edited version soon.