Great news for people who care about such things. Microsoft are on the verge of committing suicide.
There are millions of people around the world who would be using Linux if it wasn't so easy to score pirate copies of Windows. It will be hilarious if MS really pull the plug and drive them into the flippers of the penguin.
OTOH, maybe this is a secret plot by the "Live" faction in MS to smash the power of the Windows die-hards. Might even make sense in a weird kind of way. There's a momentum because companies and PC sellers probably keep buying (extremely discounted) copies of Windows for a while. Shedloads of people are inconvenienced and switch to Linux but these weren't your customers. And Live services and XBox gaming and handheld devices hold up. MS innovate in these areas, but essentially become another Apple : a niche seller of desktop operating systems to those who can't get by on free.
That way, MS never have to go through the hell of creating another Vista (ie. trying to create one gigantic mega-product to satisfy a third of the world's population.) They can leave that to the bazaar while concentrating on levying a laziness tax on corporate buyers.