@Charles:There is an awfully large number of consumers who simply don't need and/or want a general purpose OS and for whom such a product will be a perfect fit.

I'm sure we all know plenty of people who have bought laptops (and then netbooks) only to use web-browsing and hotmail, simply because there was no practical alternative.

Apple has already shown there is a market there, and once again MS seem to be missing the boat.