"The BMP-based handset will come with a touchsreeen, HTC’s in-house developed TouchFlo 3D technology and HTC Sense interface as found in the HTC touch-enabled smartphone lineup, and yet the device will be available as an entry-level model, the sources noted."
This makes sense. The Hutchison Brew-based 3G Skypephones are very high functionality at low cost (free on most tariffs) and I can see how HTC thinks they can use the same technologies to get TouchFlo/HTC Sense devices to the mass market.
At the same time, apparently unrelated to the above, HTC is to "increase adoption of Android in place of Windows Mobile". This also makes sense in that I would expect HTC have already won contracts from hardware OEMs and network operators for many Android devices.