Mary-Jo Foley highlights the confusion of Microsoft's Windows upgrade roadmap.

I've no idea what corporate Windows users are likely to do, faced with this mess. But M$ could be making it a lot better. Here's one suggestion : Give Windows 7 away, free-as-in-beer, to all existing Windows Vista licensees. XP users still have to pay to upgrade, but M$ should get everyone off Vista and on to Windows 7 as quickly as possible.

This is, of course, assuming that Windows 7 is as good as everyone says it is. But what about earlier incompatibility issues? Once again I ask, isn't Windows 7 based on the same core as Vista? Are they making it better than Vista by undoing some of the things that were new in Vista? Can 7 be both more compatible with XP and more compatible with all the new .NET stuff that came out on Vista?

ZDNet is calling this Browser Wars 2.0 ...

I've been saying that browsers are not (and shouldn't be thought of) as a site for strategic competition. But it looks as though I may be wrong on this one.

The reason I thought that there was no room for competition there, is that I saw (and still see) standards (HTML, Javascript, CSS) rather than differentiation as dominating. There's no mileage in a slightly different HTML or scripting language.

All web-applications want to be runable on all browsers ... anything else is just suicide. And all browsers want to be able to run all applications ... and so ...

But I underestimated the part about a better experience for the users which isn't related to the browser content. Browser features such as speed, privacy, off-line caching, new UIs such as Enso-like "ubiquity". All the browser makers have demonstrated that they can create some excitement in these areas.

Also, what's becoming clearer is that "privacy modes" can disrupt the kind of cookie tracking which allows, say Google, to serve relevant adverts, which makes browser innovation in this area a direct attack on Google's revenue. (And so also makes us realize how much of an interest Google have here.)

So, I think I was still right about standards in web content (at least for the moment). But as the browser really starts to replace the desktop operating system it takes over a whole lot of other responsibilities as well. And there's clearly some room for differentiation there.

This is total panic, isn't it?

Or maybe the last desperate attempt at a stand by the Windows / Desktop faction inside M$ ... "we will get it right, next time, honest"?

But they won't. And it doesn't matter. The world has moved on and desktop operating systems are nothing but a strategic red-herring.

The only question, how can M$ elegantly get out of the desktop game? They can't simply abandon it. Open sourcing it is the right thing, long term, but probably too great a cognitive dissonance for now.

So how to keep conveying commitment to windows. How to "do the right thing" support-wise for users. And yet, start to withdraw, gracefully?

Can M$ do it?