@kettch: Before joining Microsoft in 2006, I had a copy of WinFS beta 1 installed on my desktop at home. Plenty of bugs and perf was not there, but it was very obvious what WinFS was and what problem was trying to solve.
Once I joined, I worked with some of the guys who actually built it.
Saying that "has no standard interpretation in the company" is simply not true.
I believe that "interpretation" comes from apparently coincidental post blog by a MS employee from the SQL Server team that watched WinFS flounder.
So it would seem there are at least two interpretations of how WinFS was interpreted within MS.
WinFS touched upon so many technologies that I can understand that those that worked on each chunk of it emphasized their particular piece of the pie when discussing it.