Originally filed here: https://github.com/phonegap/phonegap-wp7/issues/40
When WP7 applications are submitted to the marketplace the phone capabilities they use are determined via static code analysis. This means that applications which use PhoneGap are listed as having the following capabilities, regardless of whether they are used or not:
data services, movement and directional sensor, microphone, music and video library, owner identity, camera, contacts, camera, compass
See this article for more details:
Unless the marketplace approval changes, I think PhoenGap for WP7 needs to be split into multiple assemblies based on the phone capability it uses.