Update: Microsoft didn't lose the data.

Microsoft just announced that the data in fact is not lost (they were able to recover most to all of the information). After testing the accuracy of the data and creating a restoration timeline, Microsoft will restore the data to the Sidekicks starting with users' contacts.
Apparently there was a system failure that caused data loss of the core data and the backup (which honestly totally blows).
Either way, it's good they were able to recover.
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